Gun manufacturer about to exit Chapter 11 Bankruptcy

Posted on Tuesday, January 19th, 2016 at 4:56 pm    

On January 11, firearms manufacturer Colt Defense LLC was allowed by a federal bankruptcy judge in Delaware to modify its exit plan in order to allow the company to conclude Chapter 11 bankruptcy proceedings, according to an article from The Wall Street Journal.

Reports said Judge Laurie Selber Silverstein allowed Colt to modify its restructuring plan after the company’s private-equity owner, Sciens Capital Management, failed to release $15 million in funding. Though Sciens has released reorganization funds of $5 million, the company still owes $2.6 million in lawyer fees and the late funding resulted in Colt being required to pay additional fees to have its bankruptcy loan maturity extended. Colt is now seeking $50 million to help the company fully recover from the bankruptcy, which was filed in June after the firearm manufacturer lost the business of the U.S. military.

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