It appears that our beloved Colt Defense LLC is seeing the light at the end of the tunnel following years of financial turmoil.
Colt announced this week that its plan to reorganize was accepted by the United States Bankruptcy Court for the District of Delaware, a key hurdle for a company seeking to get its ducks in a row.
“Today we achieved the last important milestone on Colt’s path to emerging from Chapter 11 as a stronger and more competitive company,” said Dennis Veilleux, President and Chief Executive Officer of Colt Defense LLC.
“We greatly appreciate the dedication and support of our extraordinary employees during this process, as well as the support we received from our financial stakeholders, Sciens Capital and our customers and vendors,” Veilleux added.
The reorganization plan, which will be implemented in the coming weeks, will reduce Colt’s debt, improve Colt’s capital structure and enhance Colt’s liquidity profile. Additionally, the company will have a new lease at its West Hartford Facility.
The plan also “finalizes a global settlement of all outstanding issues in the cases, achieved through a consensus reached among Colt’s key stakeholders, including a consortium of Colt’s secured lenders, Morgan Stanley as the lender under Colt’s pre-petition and post-petition secured term loan facilities, the official committee of unsecured creditors appointed in Colt’s bankruptcy cases, Sciens Capital Management and the landlord at Colt’s West Hartford facility.”
And an another important note, Colt has reached an agreement with the United Auto Workers Union that resolves issues relating to retiree medical benefits.
Well, it appears Colt has righted the ship. The company should enter the new year on the up and up.