Colt the gunmaker heading into bankruptcy!

Article on COLT heading into bankruptcy:

http://www.wsj.com/articles/colt-files-for-bankruptcy-seeks-august-auction-1434367176

Even the gun lobby can't keep the old-line gun manufacturer afloat,


That's what happens when you no longer produce glamorous weapons. They were unseated by Glock. It's a sad day for America when you can't kill your fellow man with a domestically manufactured weapon.



Jude said:
Article on COLT heading into bankruptcy:
http://www.wsj.com/articles/colt-files-for-bankruptcy-seeks-august-auction-1434367176
Even the gun lobby can't keep the old-line gun manufacturer afloat,

It's the opposite. Colt got on the wrong side of gun owners by vocally backing gun control measures a number of years ago.

They have less gov contracts to fall back on now too, so there you go.


Still, it saddens me to hear that the gun manufacturer who made all men equal is going bankrupt.



tjohn said:
Still, it saddens me to hear that the gun manufacturer who made all men equal is going bankrupt.

Oh the Colt name isn't going anywhere. They're going into bankruptcy, not liquidation, from what I've seen in the news. They're working on a quick sale of the biz and operating throughout the process. As with many corporations that have been around over 100 years, this is not the first change of ownership over financial pressures in their history




Hey you leftists are so focused on guns that you are missing the boat and your opportunity here. This is a leverage buyout story in the vein of "Barbarians at the Gate" or Oliver Stone's Wall Street:

"...but the main reason the company hasn't weathered rocky market conditions since the winding down of the wars in Iraq and Afghanistan is that the New York financiers who control the company borrowed too much and paid themselves lavishly.

As I reported in a feature story last year, the private equity firm Sciens Capital and its affiliates loaded Colt with debt since the mid-2000s while taking cash out in the form of "distributions" and "advisory fees...."

http://www.bloomberg.com/news/articles/2015-06-15/behind-colt-s-bankruptcy-financial-engineering-that-backfired

And after taking out money and putting the company into bankruptcy the leverage buyout firm may still wind up continuing to own Colt on the cheap:

"...Colt’s current sponsor Sciens Capital Management LLC has agreed to act as a stalking horse bidder for all of its assets and liabilities related to existing agreements, according to a statement from the gunmaker. Existing secured lenders have agreed, subject to court approval, to provide a $20 million debtor-in-possession credit facility, Colt said...."

Both quotes: http://www.bloomberg.com/news/articles/2015-06-15/behind-colt-s-bankruptcy-financial-engineering-that-backfired



Good stuff. Sounds like capitalism at its finest.


ramzzoinksus said:
Hey you leftists are so focused on guns that you are missing the boat and your opportunity here. This is a leverage buyout story in the vein of "Barbarians at the Gate" or Oliver Stone's Wall Street:
"...but the main reason the company hasn't weathered rocky market conditions since the winding down of the wars in Iraq and Afghanistan is that the New York financiers who control the company borrowed too much and paid themselves lavishly.

As I reported in a feature story last year, the private equity firm Sciens Capital and its affiliates loaded Colt with debt since the mid-2000s while taking cash out in the form of "distributions" and "advisory fees...."
http://www.bloomberg.com/news/articles/2015-06-15/behind-colt-s-bankruptcy-financial-engineering-that-backfired

And after taking out money and putting the company into bankruptcy the leverage buyout firm may still wind up continuing to own Colt on the cheap:
"...Colt’s current sponsor Sciens Capital Management LLC has agreed to act as a stalking horse bidder for all of its assets and liabilities related to existing agreements, according to a statement from the gunmaker. Existing secured lenders have agreed, subject to court approval, to provide a $20 million debtor-in-possession credit facility, Colt said...."
Both quotes: http://www.bloomberg.com/news/articles/2015-06-15/behind-colt-s-bankruptcy-financial-engineering-that-backfired


So the banks robbed the guys with the guns? There's irony for you ...


big name in the history of industrial New Jersey...there used to be, probably still is a big display of Colt guns at the Paterson Museum (along with some other cool things)


The Colt gun display is still there at the museum! Great day trip combined with seeing the falls, the castle and eating.



nohero said:


So the banks robbed the guys with the guns? There's irony for you ...

The pen is mightier than the gun?



qrysdonnell said:


nohero said:

So the banks robbed the guys with the guns? There's irony for you ...
The pen is mightier than the gun?

I expect so. Look at the number of sword makers done in by pens.



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