Colt Defense filed for Chapter 11 Bankruptcy Reorganization

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  • Last Post 18 June 2015
DR Owl Creek posted this 15 June 2015

Wow!?!  Who would have ever guessed?   The Wall Street Journal reported this morning that Colt Defense filed for Chapter 11 Bankruptcy Reorganization. According to the report, a group of “senior creditors' made a $20 Million loan to Colt to assist it through the reorganization process. This group will effectively become the new owners of all of Colt's assets.   All other “junior creditors", such as stock/bond holders, other secured creditors, suppliers, labor unions, etc, will be subject to the “cram down” provisions under bankruptcy law to determine the worth of their claims against Colt. They may receive pennies on the dollar, if they're lucky. Unsecured creditors probably won't be so fortunate.   To see more, go to:   http://www.wsj.com/articles/colt-defense-to-file-for-chapter-11-bankruptcy-protection-by-monday-1434310925>http://www.wsj.com/articles/colt-defense-to-file-for-chapter-11-bankruptcy-protection-by-monday-1434310925   Dave

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mckg posted this 16 June 2015

I guess that's where the new D.A. revolver went.

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admiral posted this 17 June 2015

mckg wrote: I guess that's where the new D.A. revolver went.Colt Defence (gov't contracts) and Colt Manufacturing (civilian sales) are different companies. Although neither are sound financially. 

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DR Owl Creek posted this 17 June 2015

admiral wrote: mckg wrote: I guess that's where the new D.A. revolver went.Colt Defence (gov't contracts) and Colt Manufacturing (civilian sales) are different companies. Although neither are sound financially. 
Nope!

Both of those entities merged back together again. This bankruptcy is for the whole enchilada.   Dave

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Duane Trusty posted this 18 June 2015

My O My

Does that mean I can go to a gun show and ask 3 to 4 times what my SSA's and 1911's are worth.

Oh that's right most vendors were doing that last year.

Duane

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badammo posted this 18 June 2015

I can usually get guns cheaper at my local gun shop than at a gun show. Too bad about Colt. Wonder who the creditor is? Anti gun group? buy them out and shut them down?

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