Gun manufacturer Colt on the brink of bankruptcy
Posted on Tuesday, June 16th, 2015 at 7:40 pm
American gun manufacturer Colt Defense LLC may file for bankruptcy if company investors and bondholders do not come up with a solution to improve sales, the St. Louis Post-Dispatch reported on June 9.
Documents revealed that sales of Colt firearms in 2014 were reduced by 30 percent and their cash reported last May was only $11.1 million. Colt reportedly has a secured debt worth $105 million and in May they failed to pay $10.9 million to senior bond holders. Regulatory filings revealed that Colt may possibly liquidate their assets in bankruptcy proceedings if bondholders do not agree with the solution of reducing costs of new securities issued.
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