Monday, June 15, 2015
It's Official - Colt Is In Bankruptcy
It have embedded below the Chapter 11 bankruptcy petition filed by Colt Defense LLC and its associated companies with the US Bankruptcy Court for Delaware. The associated companies include both Colt's Manufacturing Company and Colt Canada. The petition was filed on Sunday evening according to their press spokesman.
I have not had time to read the whole document and I'm not an expert on reading bankruptcy petitions. However, I did read through the list of unsecured creditors to whom it owes money. Number two on the list was Magpul. Colt owes Magpul almost $1 million presumably for PMags, MOE furniture, etc. Many of the other unsecured creditors are small companies that provide services to the firearms industry. As such, Colt's bankruptcy is going to be felt throughout the industry.
Jim Shepherd at The Outdoor Wire has some good commentary about the role of Sciens Capital Management in the Colt bankruptcy. They are the favored buyer or stalking horse bidder. Also read the commentary on the bankruptcy at Weaponsman.com.
More filings and the press release can be found here.