Колт пред банкротColt Defense to file for chapter 11 bankruptcy protection by Monday
Published: June 14, 2015 4:32 p.m. ET
The .45-caliber ACP pistol is one of Colt’s most-famous weapons.
Gun maker Colt Defense LLC plans to file for chapter 11 bankruptcy protection by Monday, according to people familiar with the matter, amid business and accounting troubles.
The company has secured financing to continue operating while in bankruptcy and expects to remain in business after the restructuring, the people said.
The West Hartford, Conn.-based company, with a legacy dating to 17th century New England, developed a pistol it calls “the gun that won the West” and enjoyed a lucrative stretch in the late 1990s and early 2000s as the U.S. military’s sole supplier of the M4 line of firearms widely used by front-line troops.
But Colt has struggled in recent years with a slowdown in rifle sales and its 2013 loss of a key contract to supply the U.S. Army with the M4. The company has had accounting problems that caused it to revise prior years’ reported financial results and miss a creditor’s initial filing deadline for an annual report, according to regulatory filings.
Colt plans to try to reduce its debt burden via a court-supervised auction of its business, to generate proceeds to repay some of its lenders, the people familiar with the plans said.
http://www.marketwatch.com/story/colt-defense-to-file-for-chapter-11-bankruptcy-protection-by-monday-2015-06-14 
