Colt (USA) files for protection

[hnachaj]

here is a last moment info: http://www.thefirearmblog.com/blog/2015/06/14/breaking-news-colt-to-file-chapter-11-bankruptcy/
I know of some suppliers that are nervous.
Colt Canada is a separate entity and is not affected.

 

[Trinimon]

Let's see who buys them out now.

 

[Brian46]

Let em go down like they should have with the automakers that had to take the government bailout.

 

[Stoner99]

What will this do to the price on Colt Ar's? Nothing?

 

[Onagoth]

It's amazing how some companies can't survive without grossly inflated government contacts

 

[Nestor]

Too bad if it's true.

 

[infidel29]

Samuel Colt would shoot the current CEO for running his company into the ground were he alive today

 

[orthoboy]

^^^ like.

 

[nntw]

Samuel Colt would shoot the current CEO for running his company into the ground were he alive today

Really? Samuel Colt had his share of business missteps, including two failed businesses.

https://en.wikipedia.org/wiki/Samuel_Colt

He'd probably sympathize.

 

[yohann160]

Colt (USA) files for protection (again)

Giggles

 

[chrisco]

Chapter 11 is probably the most flexible of all the chapters, and as such, it is the hardest to generalize about. Its flexibility makes it generally more expensive to the debtor. The rate of successful Chapter 11 reorganizations is depressingly low, sometimes estimated at 10% or less.

Less than 10% doesn't sound too promising in my books

Shoot straight - chrisco

 

[Lee Enfield]

It's amazing how some companies can't survive without grossly inflated government contacts

Unfortunately it's actually a case of "investors" buying the company, taking out huge loans against future earnings, and pocketing the loan money while waiting for the business to either pay off the loans, or die so that they can make more money by selling off the assets, or starting the whole process over again with the remains.

Colt has actually consistently made a profit, just not enough of a profit to pay off its repeated loans.

In reality it's legalized fraud on behalf of the owners/managers.

 

[Rebel Rouser]

Unfortunately it's actually a case of "investors" buying the company, taking out huge loans against future earnings, and pocketing the loan money while waiting for the business to either pay off the loans, or die so that they can make more money by selling off the assets, or starting the whole process over again with the remains.

Colt has actually consistently made a profit, just not enough of a profit to pay off its repeated loans.

In reality it's legalized fraud on behalf of the owners/managers.

They were raped and pilaged by the hedge fund company that owns them. They decided to pocket the loan money paid out as dividends to investor holders. Pretty close to a ponzi scheme IMHO.