Wednesday, May 27, 2015

More Colt News


As I wrote last week, Colt Defense LLC is teetering on the verge of bankruptcy. Yesterday, they once again extended their deadline for bondholders to either accept their offer to exchange their notes or Colt goes ahead with a prepackaged bankruptcy filing. The deadline now expires on June 2nd. So far, only 5.7% of bondholders have tendered their old bonds in exchange for the new notes.

WeaponsMan reported a few days ago that Colt has mortgaged some of its patents. According to Daniel Watters, Colt has mortgaged these patents to a number of borrowers with the latest being Cortland Capital as security for a $33 million loan.
Of course, the finance companies do not want to exploit the patents; they just want security for their loans, and winding up holding the patents in lieu of principal and interest is not their preferred outcome. They’re in the money racket, not the gun racket.

But if Colt defaults on its Cortland loan, Cortland winds up holding a bag of patents (and any other security Colt pledged) rather than its money. In such as case, they might be able to charge Colt royalties for using these inventions of its employees and former employees. If Colt production continues. Or resumes. Most likely, they would try to sell the patents.

The patents are one of the true stores of value in Colt Defense LLC, but they have been mortgaged as part of the financial looting monetization of the company that the last several rounds of owners have undertaken. The company’s trademarks are also a highly valuable asset. One wonders if they, too, have been mortgaged.
There is some good news for Colt. They have won a $36 million contract to deliver M4 and M4A1 carbines to a number of foreign countries including Jordan, Panama, and Colombia.
Colt Defense LLC, West Hartford, Connecticut, was awarded a $36,104,812 firm-fixed-price, indefinite-delivery/indefinite-quantity foreign military sales contract (Jordan, Antigua and Barbuda, Belize, Colombia, Hungary, Oman, Panama, Romania, Senegal, Lebanon, Romania) for M4/M4A1 carbines. Funding and work location will be determined with each order with an estimated completion date of May 21, 2018. Bids were solicited via the Internet with one received. Army Contracting Command, Warren, Michigan, is the contracting activity (W56HZV-15-D-0038).

7 comments:

  1. "The company’s trademarks are also a highly valuable asset. One wonders if they, too, have been mortgaged." Yes, their trademark registrations show security interests recorded against them.

    ReplyDelete
  2. @Glenn - agree with you there. That is why I always cringed when I saw their logo on crummy cheap imported knives made in either China or Pakistan.

    ReplyDelete
  3. "They have won a $36 million contract to deliver M4 and M4A1 carbines to a number of foreign countries including Jordan, Panama, and Colombia."

    Hopefully the Secretary of State has signed off on this deal, or Colt will be dealing with ITAR violations, in addition to its financial woes.

    ReplyDelete
    Replies
    1. Given that the US Army is the broker for the deal, I'd suspect that the State Department already knows about it.

      Delete
  4. Do you need Personal Loan?
    Business Cash Loan?
    Unsecured Loan
    Fast and Simple Loan?
    Quick Application Process?
    Approvals within 24-72 Hours?
    No Hidden Fees Loan?
    Funding in less than 1 Week?
    Get unsecured working capital?
    Contact Us Now:majidvijahlending@gmail.com

    LOAN SERVICES AVAILABLE INCLUDE:
    ================================
    *Commercial Loans.
    *Personal Loans.
    *Business Loans.
    *Investments Loans.
    *Development Loans.
    *Acquisition Loans .
    *Construction loans.
    *Business Loans And many More:

    LOAN APPLICATION FORM:
    =================
    Full Name:................
    Loan Amount Needed:.
    Purpose of loan:.......
    Loan Duration:..
    Gender:.............
    Marital status:....
    Location:..........
    Home Address:..
    City:............
    Country:......
    Phone:..........
    Mobile / Cell:....
    Occupation:......
    Monthly Income:....

    Contact Us At :majidvijahlending@gmail.com

    ReplyDelete
  5. Hello Everybody,
    My name is Mrs Sharon Sim. I live in Singapore and i am a happy woman today? and i told my self that any lender that rescue my family from our poor situation, i will refer any person that is looking for loan to him, he gave me happiness to me and my family, i was in need of a loan of S$250,000.00 to start my life all over as i am a single mother with 3 kids I met this honest and GOD fearing man loan lender that help me with a loan of S$250,000.00 SG. Dollar, he is a GOD fearing man, if you are in need of loan and you will pay back the loan please contact him tell him that is Mrs Sharon, that refer you to him. contact Dr Purva Pius,via email:(urgentloan22@gmail.com) Thank you.

    ReplyDelete
  6. How I Got My Loan From A Genuine And Reliable Loan Company

    Hello Everybody,
    My name is Mrs.Irene Query. I live in Philippines and i am a happy woman today? and i told my self that any lender that rescue my family from our poor situation, i will refer any person that is looking for loan to him, he gave me happiness to me and my family, i was in need of a loan of $150,000.00 to start my life all over as i am a single mother with 2 kids I met this honest and GOD fearing man loan lender that help me with a loan of$150,000.00 US. Dollar, he is a GOD fearing man, if you are in need of loan and you will pay back the loan please contact him tell him that is Mrs.Irene Query, that refer you to him. contact Dr Purva Pius,via email:(urgentloan22@gmail.com) Thank you.


    1. Your Full names:_______
    2. Contact address:_______
    3. Country Of Residence:______
    4. Loan Amount Required:________
    5. Duration:_____
    6. Gender:_____
    7. Occupation:________
    8. Monthly Income:_______
    9. Date Of Birth:________
    10.Telephone Number:__________

    Regards.
    Managements
    Email Us: urgentloan22@gmail.com

    ReplyDelete