Posted on 06/13/2015 10:37:21 AM PDT by Jan_Sobieski
Colt, the iconic American gunmaker, could be bankrupt within days. The company, that has been making guns for 160 years, has been struggling financially and missed a $10.9 million interest payment on its debt in mid-May.
Colt admitted, in a regulatory filing, that its failure to make that interest payment raises "substantial doubt about the company's ability to continue as a going concern." Colt also said it "may seek relief under the bankruptcy code." The company has a 30-day grace period until June 14 to make the interest payment after which it has to find a way to restructure the debt with its bondholders.
Kevin Starke, gun industry analyst for CRT, said that Colt had already signed a debt restructuring agreement with its bank, but a group of bondholders rejected it that would have dropped the bonds to 45% of their face value. Starke said that bondholders are reluctant to agree to any pact that forces them to take a loss. That's because they might have a better chance of recovering all or most of their money in bankruptcy, assuming that Colt gets sold for enough money to cover the $250 million worth of bonds and another $102 million in additional debt.
That could be possible if a buyer emerges from among its larger gunmaking rivals such as Smith & Wesson (SWHC) or Sturm Ruger (RGR). Colt's status in the gun industry and its role in American history cannot be overstated. The West Hartford manufacturer established by Sam Colt has been the most famous gunmaker in America since the 1840s, when the Texas Rangers adopted its revolver during their Wild West wars with Native Americans...
(Excerpt) Read more at money.cnn.com ...
"Enough of your lawyer BS, Colt! Pay up!"
Shes got the full size and I’ve got the 4 inch version. That’s my wife, always wants that extra inch.
Hope you’re well.
L
If you think merely owning a gun makes you equal to God, you are mentally ill.
Given Malloy and his demonrat legislature's recent budget which punishes business with even higher taxes, and does so retroactively, the state doesn't deserve to keep any business or corporation. In the span of 30 years it went from a somewhat conservative, manufacturing powerhouse with no income tax to a highly taxed and regulated section 8 wasteland besprinkled with an occasional mcmansion.
The parasites have bled the host dry.
if you don't know the history of the quote, nor comprehend its meaning, you should probably sit on your hands and just be quiet.
This saying has been around since the Civil War.
The other version “Abe Lincoln may have freed all men, but Sam Colt made them equal” may be more palpable to you.
You’re kidding, right?
Mark
Colt’s always been on financial roller coaster, since the days of Sam Colt himself.
They relied too heavily on Government contracts in many instances, such as the M-16.
They rested too much on their laurels... The Peacemaker, they wore out the machinery and discontinued it... others revived it.
The Government Model 1911, they were the only ones that made it for a long time, but never brought it to it’s potential (the National Match was good), leaving that to pistol smiths like Jim Clark. It was only a short leap to manufacture these customized guns “out of the box”, and others took it.
I realize the saying is “iconic.” However man will never be equal to God, gun owner or not.
Yep! Head to TX, SC, TN or any other state not affiliated, philosophically, with the resurgent Soviet Union...
Not to mention the recent CT $450 million business tax increase just signed into law...Although pinko Malloy is saying he'd be willing to roll back about half of it...
As you said, it's their loss.
I know you’re joking,
it refers to Man being equal to Man.
A firearm being an Equalizer.
Hope that helps.
Colt spent most of its time making everyday guns and became large and prosperous. They should take that market back.
I hope someone buys them out, moves them to Texas, names Ted Nugent and Chuck Norris spokesmen and just kicks everyones butt with a return to the type of gun that made them great.
We got the people to help bring Colt back.
Texas, Houston to be exact. You bring the factory, we’ll bring the rock and highschool bands for opening day!
Have some snakes and several semi-auto Colts. Returning to the past is not the answer as competition has advanced beyond the original snakes and at prices I doubt Colt could match. In addition, the snakes were not without their own problems (I.e., Python timing with use, early Anaconda barrel problems). In my opinion, Colt invested too heavily in one customer (government), accepted the terms that accompanied the contracts, and failed to recognize trends that competition was setting. For instance, almost every manufacturer now offers an upgraded 1911 style pistol for roughly what Colt charges for a basic model. Colt’s early foray into the plastic gun market was also a disaster. Looking at the AR market, almost all buyers are looking for some degree of customization at a reasonable price. Looking at Colt’s product line, I think they are a little behind the market. Heavy reliance on military sales seems to have hurt more than helped the company. This is not to negate the high cost of being in Connecticut.
As the adage goes, “Collect Colt, shoot Smith and Wesson (or a number of others)”.
In Vietnam, until I was medevaced, I carried an M-16 manufactured by Frigidaire...seriously!
It sure generated a lot of corny jokes & wisecracks!
Ice Man comes to mind,,,
When Colt (and Winchester) went the non-gunowner executive MBA route, they lost everything.
Check out “Republic Forge” made in Perryton Texas.....:o)
Most reliable, accurate and expensive 1911 I’ve owned and used....
Stay Safe !
Agree.....
I really miss this company.
https://en.wikipedia.org/wiki/U.S._Fire_Arms_Manufacturing_Company
I own a bisley 1873 clone they made that makes turnbulls variants look like scrap metal. They did very nice work.....key word did.
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