On Sunday, June 14, 2015, Colt Holding Company LLC and 9 affiliates, including Colt Defense, LLC filed voluntary chapter 11 petitions in the United States Bankruptcy Court for the District of Delaware. The case is docketed as case no. 15-11296 and has been assigned to The Honorable Laurie Selber Silverstein. Filed in support of the petition is the Declaration of Keith A. Maib, the Chief Restructuring Officer of Colt Defense, LLC.
Mr. Maib identifies the debtors as one of the world's oldest designers, developers and manufacturers of firearms for military, law enforcement, personal defense, and recreational purposes.
Mr. Maib notes that current liquidity issues result from business trends, including declines in modern sporting rifle sales and aggregate handgun demand as well as timing delays in U.S. Government sales and foreign military sales.
According to the Maib Declaration, prior to the filing, the Debtors solicited votes for a prepackaged plan, but after the voting deadline expired on June 12, 2015, it was clear that the debtor would not be able to confirm their pre-packaged plan. Accordingly, the petitions were filed without a plan. Instead, through the filings, the Debtors hope to consummate an expedited sale of their assets as a going concern.
The company has secured debt of $72.9 million secured with a first lien on intellectual property and a second lien on all other assets. The debtors also have a $35 million senior loan secured by a second lien on intellectual property and a first lien on all other assets. In addition, there are $250 million in 8.75% senior notes due 2017.
US operations are primarily located in West Hartford, Connecticut. The Debtors employ approximately 729 employees, of which 715 are full-time.