Latva Machine filed for bankruptcy
Posted on Friday, July 25th, 2014 at 11:21 am
Newport-based precision metal firm Latva Machine recently sought bankruptcy protection due to millions of dollars of debt caused by a delay of contract with a firearms manufacturer, NHBR reported on July 15.
Reports said that although Latva’s assets are worth $5.1 million, the bulk of this is in the form of inventory and equipment that may not earn them profit if gun maker Remington Arms does not start making firearms that are scheduled for this coming August. Latva currently has outstanding debts in the amount of $3.2 million. Latva, who supplies thousands of gun barrels per week to Remington, had their contract delayed due to design issues. Latva was approved by a bankruptcy court to utilize its remaining cash to keep their business going before September.
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