Colt, the Connecticut-based armaments company which produced the famous revolver which 'won the wild west,' is trying to avoid biting the dust itself by filing for chapter 11 court protection from its creditors on Sunday – the equivalent of examinership in Ireland.
The gun-maker which has debts of $355m, has suffered recently due to a slowdown in rifle sales generally and the loss of key contracts with the US military for the M4 rifle, used widely by the army over recent decades in Iraq and Afghanistan.
The company has secured $20m in emergency financing from its existing senior lenders to fund it through the Chapter 11 process.
Interestingly when the company was put up for sales on Sunday, the opening offer came from its current owner - the offer was zero dollars.
The so-called 'stalking horse bid,' came from the private equity firm Sciens Capital Management who offered to assume the company's obligations, including some $105m in outstanding loans and up to $20m in new loans.
Colt is now going through a major restructuring drive. Chief restructuring officer Keith Maib says that it "remains open for business."
