old steel
22nd November 2014, 09:47 PM
Colt Firearms: Is One of the Industry’s Oldest Gun Makers About to go Bust? By Dave Dolbee (http://blog.cheaperthandirt.com/author/davidd/) published on November 17, 2014 in News (http://blog.cheaperthandirt.com/category/news/)
Breaking News Update Hip, hip Hooray and pass the M4s! Colt Defense LLC has received a stay of execution thanks to the deal it struck with Morgan Stanley. By doing so, Colt will be able to not only make its $ 10.9 million bond payment, there will be enough left over to pay off the existing $48.1 million loan due in December. This will give Colt the time it needs to restructure and rebuild before the loan matures in 2018.
This is good news for Colt fans and removes life support so the patient can breathe. Let’s hope for a full and robust recovery.
“God made man, but Samuel Colt made them equal.”
Are we about to lose one of the industry’s oldest gun makers? There is little doubt about it, Colt (http://www.cheaperthandirt.com/ProductListing.aspx?brand=Colt&catid=1659,1612,1696,2144&utm_source=blog&utm_medium=social&utm_content=ddolbee&utm_campaign=20141117-coltfirearmsabouttogobust-colt-firearms) is
on life support and the vital signs do not look good for one of the oldest and most revered names in the firearm industry. Today, November 17, marks the due date for Colt’s $10.9 million bond payment. There is a 30-day grace period, that would push the default date to December 15. However, even if it does make the payment, Colt owes another $48 million by the end of the year.
http://blog.cheaperthandirt.com/wp-content/uploads/2012/06/SamuelColt.jpgSamuel Colt
Colt claims that sales are down, which mirrors the sentiments Ruger acknowledged during its latest earnings call. Similar to Ruger’s woes, but much more severe, Colt (http://www.cheaperthandirt.com/ProductListing.aspx?brand=Colt&catid=1659,1612,1696,2144&utm_source=blog&utm_medium=social&utm_content=ddolbee&utm_campaign=20141117-coltfirearmsabouttogobust-colt-firearms) is expected to report at least a 50-percent decline in income for the latest quarter. Colt blames its predicament on the steady decline in demand from the commercial market as well as delays in government sales. The company reported in June a $20.5 million loss for 2014, down from a $9.5 million profit for the period in 2013.
All of this points to one of a few different scenarios. First, Colt (http://www.cheaperthandirt.com/ProductListing.aspx?brand=Colt&catid=1659,1612,1696,2144&utm_source=blog&utm_medium=social&utm_content=ddolbee&utm_campaign=20141117-coltfirearmsabouttogobust-colt-firearms) can claim bankruptcy. If Colt does not declare bankruptcy and defaults, creditors will likely force it into bankruptcy and liquidate the assets or the company will operate under the direction and protection of a court appointed bank, limiting major operational decisions. Of course, Colt (http://www.cheaperthandirt.com/ProductListing.aspx?brand=Colt&catid=1659,1612,1696,2144&utm_source=blog&utm_medium=social&utm_content=ddolbee&utm_campaign=20141117-coltfirearmsabouttogobust-colt-firearms) is a union shop and falls under the United Auto Workers (UAW) so President Obama could step in and offer a government bailout. Yeah, I know; I could not resist.
How would the loss of Colt affect you? Share your sentiments or favorite Colt story in the comment section.
http://blog.cheaperthandirt.com/?p=72407%20/?utm_source=newsletter&utm_medium=social&utm_content=ddolbee&utm_campaign=20141122-chronicle1122-willcoltgobust
Breaking News Update Hip, hip Hooray and pass the M4s! Colt Defense LLC has received a stay of execution thanks to the deal it struck with Morgan Stanley. By doing so, Colt will be able to not only make its $ 10.9 million bond payment, there will be enough left over to pay off the existing $48.1 million loan due in December. This will give Colt the time it needs to restructure and rebuild before the loan matures in 2018.
This is good news for Colt fans and removes life support so the patient can breathe. Let’s hope for a full and robust recovery.
“God made man, but Samuel Colt made them equal.”
Are we about to lose one of the industry’s oldest gun makers? There is little doubt about it, Colt (http://www.cheaperthandirt.com/ProductListing.aspx?brand=Colt&catid=1659,1612,1696,2144&utm_source=blog&utm_medium=social&utm_content=ddolbee&utm_campaign=20141117-coltfirearmsabouttogobust-colt-firearms) is
on life support and the vital signs do not look good for one of the oldest and most revered names in the firearm industry. Today, November 17, marks the due date for Colt’s $10.9 million bond payment. There is a 30-day grace period, that would push the default date to December 15. However, even if it does make the payment, Colt owes another $48 million by the end of the year.
http://blog.cheaperthandirt.com/wp-content/uploads/2012/06/SamuelColt.jpgSamuel Colt
Colt claims that sales are down, which mirrors the sentiments Ruger acknowledged during its latest earnings call. Similar to Ruger’s woes, but much more severe, Colt (http://www.cheaperthandirt.com/ProductListing.aspx?brand=Colt&catid=1659,1612,1696,2144&utm_source=blog&utm_medium=social&utm_content=ddolbee&utm_campaign=20141117-coltfirearmsabouttogobust-colt-firearms) is expected to report at least a 50-percent decline in income for the latest quarter. Colt blames its predicament on the steady decline in demand from the commercial market as well as delays in government sales. The company reported in June a $20.5 million loss for 2014, down from a $9.5 million profit for the period in 2013.
All of this points to one of a few different scenarios. First, Colt (http://www.cheaperthandirt.com/ProductListing.aspx?brand=Colt&catid=1659,1612,1696,2144&utm_source=blog&utm_medium=social&utm_content=ddolbee&utm_campaign=20141117-coltfirearmsabouttogobust-colt-firearms) can claim bankruptcy. If Colt does not declare bankruptcy and defaults, creditors will likely force it into bankruptcy and liquidate the assets or the company will operate under the direction and protection of a court appointed bank, limiting major operational decisions. Of course, Colt (http://www.cheaperthandirt.com/ProductListing.aspx?brand=Colt&catid=1659,1612,1696,2144&utm_source=blog&utm_medium=social&utm_content=ddolbee&utm_campaign=20141117-coltfirearmsabouttogobust-colt-firearms) is a union shop and falls under the United Auto Workers (UAW) so President Obama could step in and offer a government bailout. Yeah, I know; I could not resist.
How would the loss of Colt affect you? Share your sentiments or favorite Colt story in the comment section.
http://blog.cheaperthandirt.com/?p=72407%20/?utm_source=newsletter&utm_medium=social&utm_content=ddolbee&utm_campaign=20141122-chronicle1122-willcoltgobust