Skip to comments.REPORT: Colt May Default After Poor Quarterly Results
Posted on 11/14/2014 3:28:19 PM PST by aimhigh
The Wall Street Journal reports that Colt Defense LLC has filed papers with the Securities and Exchange Commission indicating it does not have the funds to pay back loans and may default on its payments to bondholders.
According to the report, Colt is expected to declare a loss of as much as 60 percent for the quarter over last year, based largely on declining sales and delays in payment for government contracts. Colt told the SEC it may not be able to make a nearly $11 million payment next month on a $248.8 million loan.
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The fedgov wouldn’t do that to Colt, now, would it?
I wish I had a Colt Python.
article was written by idiots. they confuse “junk bonds” with “junk stock” (no such thing), and sales losses with operating losses regarding their statements about Ruger and Smith.
Maybe Colt could stay in business if they’d leave Connecticut.Production would be cheaper and more efficient elsewhere.Like a real Pro 2nd Amendment State.
Dangit, I better cough up the bucks for that Woodsman I’ve been wanting before the price of anything with “Colt” on it goes even higher than it already is. Dont ask me why, I’ve just always wanted one for some reason
Hope this isnt fallout from that DOJ banking scheme.
In days gone by, I had to call the woman cutting checks at the State department and beg her to pay my bills
She always paid but not on time
Colt stopped making all these revolvers many years ago.
No Pythons, no Detective Specials.
And they missed the boat on the 2009-today boom times in the private firearms market.
I wish I had a single action army. I will eventually be able to get one of the italian knockoffs but I would love to get a real one.
Colt should have gotten away from the government nipple long ago. The government since its being ran by left wing fascists is going to screw an arms manufacturer.
Now, why would a producer of over priced firearms be in trouble?
I think it would be neat to get a Series 70 1911, if they are still available.
CLTDEF 8 3/4% bonds due 11/2017 were trading in the 40s today before I left. Sold them to clients at 55 2 yrs ago and got them out around 85. YTM=40%+. CC+ rated (very speculative). If they don’t pay tommorrows coupon, they are in default. Don’t expect to to get the next 5 coupons, and don’t expect a 102 call.
The python has the best trigger of any production handgun I have ever fired. It is a pity that it is out of production.
Maybe one could pick up some of their AR’s at fire sale prices.
I wish I had one.
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