How Does Colt USA situation Effect Colt Canada

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CdnCombatMedic

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I posted this exact thread topic in the CC forum only to have it deleted as it was cited as rude and disruptive which it is neither.

Anyways, I'm curious how the Colt USA financial situation will effect Colt Canada , or if it even will.

I was under the understanding that the Canadian gov't owned some pieces of their machinery and was the CAF small arms manufacturer.

I for one don't see the Kitchener plant going anywhere do to these connections. If Colt USA goes under I'm curious to what would happen. I don't want CC civ sales to be dropped.
 
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That is what I'm concerned about is civilian sales to be honest. I don't see the Kitchener production facility going anywhere. I would anticipate a name change and maybe a restructure if anything

I wonder if this has anything to do with the hold up of the IUR for civilian sales.
 
Wow, so Colt Canada, a private company, does not want to discuss privileged financial/business dealings on a public information forum. Astounding. Maybe a bigger concern than civilian sales to the relatively microscopic Canadian arms market is actually keep the folks at Colt Canada employed.
 
Seriously, you are asking the sale department of the "wholly owned foreign subsidiary" to make comments on "corporate" issues of the "headquarter" located out in the foreign land.

This is like asking the manager at the local bank to comment on the impact the head office on Bay street concerning their latest FX hedging strategy...or asking a WO in an infantry platoon about the what it is cooking up inside NDHQ regarding the specific measures to deal with the next year budget. Way out of the lane....

And next thing you know, people will take those comments as the "official press release" or "official position" of the company itself!

Anyone who has 1/2 brain will not comment on anything like that, unless you want to lose your job.
 
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I was not expecting privileged information but maybe a corp statement or if/when was coming. Figured the most information was coming from other posters anyways. I was hoping for a good discussion. Was looking for an answer on how linked they are with the USA. I can't be the only person wondering. Colt USA gave a statement, I would expect CC to do the same. Call me crazy but....

Apparently the business forum is the same as a storefront. So I asked a question that could be directed. They had the choice to give an answer or not, delete my post, or ban me from their business forum.
 
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Here is the reason why you are barking at the concrete wall and you are pissing people at Colt Canada off.

What it is happening is that Colt USA is running late with its interest payments to the Bond holders.

Colt Canada is a subsidiary of Colt USA, what it really means is that Colt USA holds certain amount of shares of Colt Canada.

Colt Canada does not share any gain/loss that is pushed down by Colt USA. Colt Canada's profit/loss got pushed up to Colt USA through some accounting treatment.

In simple English, Colt USA's problem is none of Colt Canada's problem. If Colt USA needs money, they can just sell Colt Canada to someone else for cash. This is AS FAR AS Colt Canada can see in this whole corporate picture.

You are bugging the sale people whose expertise is dealing with consumer products to give you a run down on corporate structure and stuff. For a company with 100 or less people, they probably only have 2 guys in management understand what it is going on, and has the authorization to ask for authorization to create press releases concerning corporate matters. And you are bugging the sale people on Sunday to give you a press release on these rather complicated corporate issues. I will be pissed off too if I am the sale rep.
 
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greentips said:
Here is the reason why you are barking at the concrete wall and you are pissing people at Colt Canada off.

What it is happening is Colt USA that is running late with its interest payment to the Bond holders.

Colt Canada is a subsidiary of Colt USA, what it really means is that Colt USA hold certain amount of shares of Colt Canada.

Colt Canada does not shares any gain/loss that is pushed down by Colt USA. Colt Canada's profit/loss got pushed up to Colt USA through some accounting treatment.

In simple English, Colt USA's problem is none of Colt Canada's problem. If Colt USA needs money, they can just sell Colt Canada to someone else for cash. This is AS FAR AS Colt Canada can see in this whole corporate picture.

You are bugging the sale people whose expertise is dealing with consumer products to give you a run down on corporate structure and stuff. For a company with 100 or less people, they probably only have 2 guys in management understands what it is going on and has the authorization to ask for authorization to create press release concerning corporate matter. And you are bugging the sale people on Sunday to give you a press release on these rather complicated corporate issue. I will be pissed off too if I am the sale rep.
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Thanks for the information. That clears up a lot.
Sure I posted in their forum on Sunday, but what does that have to do with it. I didn't expect a reply today.
No reason IMHO to get upset. A simple this is something we can't discuss would have done or a press release will come in a week etc.
 
Not beating a dead horse but Colt Canada owes nothing to Civilian Sales purchasers with respect to business dealings press releases. It is none of our business. If they choose to make a statement it is of their own choice, for their own reasons. They may deem it prudent...or not.

I am a partner in a private company too. I would consider a question about our corporate future, practices, profits and losses etc much like a question about the figures on my own personal T4 - rude.
 
Bolivar said:
Not beating a dead horse but Colt Canada owes nothing to Civilian Sales purchasers with respect to business dealings press releases. It is none of our business. If they choose to make a statement it is of their own choice, for their own reasons. They may deem it prudent...or not.

I am a partner in a private company too. I would consider a question about our corporate future, practices, profits and losses etc much like a question about the figures on my own personal T4 - rude.
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If you have to ask, Your beating a dead horse :)

Doesn't the gov't of Canada own some machinery at CC? If that's the case then that's tax payer money.

If a release of information was put out about your company about financial trouble I'm sure you would expect questions especially from people who you sold too and offer a warranty.
 
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Where there's smoke there's fire.

I would be willing to bet at the least we'll see job cuts/downsizing.

If the parent company can't keep the wolves away, the kids will suffer too...
 
Shooter1of38 said:
Where there's smoke there's fire.

I would be willing to bet at the least we'll see job cuts/downsizing.

If the parent company can't keep the wolves away, the kids will suffer too...
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That is like saying that CN will go down the drain if Bill Gates goes bankrupt since he is the biggest share holder...
 
I used to work for a Canadian subsidiary of a US company that went Chapter 11, the Canadian branch was making very good profits and basically we ended up floating the parent company until it got it's debt restructured.
 
enefgee said:
I used to work for a Canadian subsidiary of a US company that went Chapter 11, the Canadian branch was making very good profits and basically we ended up floating the parent company until it got it's debt restructured.
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Makes sense and keeps the doors open but CC is much smaller than Colt USA. Wouldn't it be a drop I'm a bucket on comparison with sales etc?
 
CdnCombatMedic said:
Makes sense and keeps the doors open but CC is much smaller than Colt USA. Wouldn't it be a drop I'm a bucket on comparison with sales etc?
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It may seem small, but the US parent of he company I worked for had 60,000 employees, DoD contracts and major manufacturer contracts, and money made by 1,200 Canadians floated it for a few years. Profitability and size don't necessarily correlate.
 
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