Colt: The Continued Soap Opera.
- Thread starter Old Fuff
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I first got into guns on my own in the mid to late 90's. At that time, there were a lot of fans of Colt, but I was never interested in Colt. There were 1911's and AR-15 rifles that would give you just as good of performance at a lower price. Even many of the fans agreed that while Colts are good, they are not worth the premium price charged compared to competitors.
If Colt gets sold off, I can easily see the company or the name getting split up with different groups getting the rights to different pieces, even Colt revolvers and 1991's being made by different companies.
If Colt gets sold off, I can easily see the company or the name getting split up with different groups getting the rights to different pieces, even Colt revolvers and 1991's being made by different companies.
TheVision
Member
Except, of course, for employee Rollin White's patent for metallic cartridge revolver cylinders. He fired White instead.
Colt's mismanagement goes back to employee number one.
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NEWS FLASH!
Apparently the other shoe is about to be dropped. It is being reported that Colt will file for Chapter 11 (Reorganization) Bankruptcy sometime on Monday, June 15th, 2015.
The company claims that it has received (or will receive) additional financing to remain in business during the bankruptcy proceedings, during which the company's present assets will be sold. Then, at least in theory, the new company will move forward without the present one's debt. Who will buy what assets of the current company will be decided by the Bankruptcy Court.
The most detailed description was published in the WSJ, but at this time is only available to subscribers. Monday's financial web sites will likely offer much more information about Colt's likely fate.
Apparently the other shoe is about to be dropped. It is being reported that Colt will file for Chapter 11 (Reorganization) Bankruptcy sometime on Monday, June 15th, 2015.
The company claims that it has received (or will receive) additional financing to remain in business during the bankruptcy proceedings, during which the company's present assets will be sold. Then, at least in theory, the new company will move forward without the present one's debt. Who will buy what assets of the current company will be decided by the Bankruptcy Court.
The most detailed description was published in the WSJ, but at this time is only available to subscribers. Monday's financial web sites will likely offer much more information about Colt's likely fate.
Hardly. At the time Sammy looked at it, it made no sense. A cylinder with chambers bored through from end-to-end during the C&B era was completely impractical, and self contained metallic cartridges were to come later in the future.
Sammy wasn't the only one who showed massive disinterest in White' patent, and he was unable to do anything with it until later when Smith & Wesson noticed it. The Colt Company suffered very little from it until after the Civil War, and by then Sammy had unfortunately passed away.
WestKentucky
Member
I'm no bankruptcy guru, and I would not be suprised if this sounds dumb, BUT...if a company is filing chapter 11, how do they propose to maintain production during the proceedings? Is there an assumption that the company might be purchased in entirety and would be worth more as a functional company rather than strictly as property? If assets are owned currently by colt and are slated for sale by bankruptcy judge, then when asset #123 is sold, how then does the company continue to do business assuming that asset #123 is something directly related to production. I'm confused (doesn't take much) about how this might possibly shake out.
Jim Watson
Member
You can still buy a Winchester, even though it is all owned by FN now.
FN or Beretta could buy Colt up in bankruptcy court, tell Sciens Management to go fly a kite, and make the familiar lineup with the familiar trademark Somewhere Else.
FN or Beretta could buy Colt up in bankruptcy court, tell Sciens Management to go fly a kite, and make the familiar lineup with the familiar trademark Somewhere Else.
You have some good points, and no you are not stupid.
At this time (Sunday, June 14th) only a few insiders and they're attorneys know exactly what's in the documents that will be filed on Monday. After the Motion(s) is filed anyone who wants a copy can buy it as a photocopy from the Clerk's Office, and you can be sure interested parties and financial/business reporters will dissect it with a fine tooth comb.
I expect we see some action from the bond holders and others who will want to protect their interests. Last, but far from least, the Union will very likely seek to protect worker pensions and medical coverage.
So the Court Clerk's Office may see a very busy week coming up.
bannockburn
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Colt: "The Continued Soap Opera" or "As The (Bankruptcy) World Turns". Stay tuned for the next thrilling installment!
CoalTrain49
Member
It's my understanding that secured debt is first in line. Then bond holders, then employees pensions and pay. I was working for a company that filed and I was left holding the bag. They never paid me what I was owed as an employee. I feel sorry for the employees.
bannockburn
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Old Fuff
There you go...another "reality based" TV show to watch!
What a cast: you've got massive mismangement, a troublesome labor union, and who knows how many politicians, lawyers, and financial experts involved as well.
Maybe this would be a more profitable way for Colt to go. Certainly more entertaining than Bankruptcy Court.
There you go...another "reality based" TV show to watch!
What a cast: you've got massive mismangement, a troublesome labor union, and who knows how many politicians, lawyers, and financial experts involved as well.
Maybe this would be a more profitable way for Colt to go. Certainly more entertaining than Bankruptcy Court.
Mosbyranger
Member
I don't know much about big financial dealings, bankruptcy or corporate debt structure. What I do know however is that about 2 years ago I got a part time job behind the gun counter of a LCGS. Think green and gold.... Anyway, I see Colt products sitting beside the Rugers, Sigs, and Smiths. There is no comparison between the companies. Colt products are higher priced and usually offer less features than their competitors. Who pays $1100+ for a Colt 1911 when a $769 Ruger is just as good? Who pays $800 for a Mustang when a Sig
P238 goes for $650 and has night sights? Colt needs a shake up and better start putting out a competitive product, or they will continue to be ignored by the consumer who wants their $ to stretch as far as possible. Colt heads may be offended but the Colt line sits ignored because people will not pay a premium for a prancing pony logo and fewer features.
MR
P238 goes for $650 and has night sights? Colt needs a shake up and better start putting out a competitive product, or they will continue to be ignored by the consumer who wants their $ to stretch as far as possible. Colt heads may be offended but the Colt line sits ignored because people will not pay a premium for a prancing pony logo and fewer features.
MR
GAMEOVER44
Member
This could be good, happend to Ford and they came back stronger then ever. Now look at their cars.
Constrictor
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Except ford has never filed bankruptcy before.
seeker_two
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After decades of mismanagement, Colt being bought out by FN or Beretta (or even Armscor) could be a good thing.....
bannockburn
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GAMEOVER44
Maybe you're thinking about Chrysler's financial difficulties many years ago or more recently the short term insolvency of GM. The Feds are going to step in and help any way they can because the automotive industry is big potatoes compared to one gun company, who through their own mismanagement and shortsightedness, has fallen on hard times. Besides one less gun company would probably make the current Administration (along with all of his anti-gun cronies), positively giddy with excitement.
Maybe you're thinking about Chrysler's financial difficulties many years ago or more recently the short term insolvency of GM. The Feds are going to step in and help any way they can because the automotive industry is big potatoes compared to one gun company, who through their own mismanagement and shortsightedness, has fallen on hard times. Besides one less gun company would probably make the current Administration (along with all of his anti-gun cronies), positively giddy with excitement.
Da Yooper
Member
Careful I just replaced the back leaf spring mounts on my full size FORD van that rusted out
Never in my 65 years have i had to do that on any vehicle I have owned & that covers a lot of veeee-hicles. No thread drift intended.
Colt needs to go away their products are way over priced for what you pay. It appears the market place is speaking. Time to go TU.
HoosierQ
Member
Let's face it. They make one thing (albeit a few different models). Jeep was never able to make it as their own company and was passed from automaker to automaker over the decades. Yes what they make is very good, the standard in fact for an entire class of products. But at the end of the day, their product has been imitated, their price point has been undercut by both products of equivalent or lesser quality. I think we should hope that somebody other than one of those holding companies buys them out and leaves them alone.
Latest news on Monday morning (June 15th) from a news source in the UK.
It would appear that the present company, fronted by Sciens Capital Management, plan to file bankruptcy, and then buy back whatever they want, and thereafter continue on without the present debt load. Those that held unsecured bonds are likely going to lose their entire investment, but they may not go quietly and force matters beyond 60 to 90 days. Also Sciens Capital Management's, apple cart might be upset if someone else outbids them.
So the soap opera continues...
It would appear that the present company, fronted by Sciens Capital Management, plan to file bankruptcy, and then buy back whatever they want, and thereafter continue on without the present debt load. Those that held unsecured bonds are likely going to lose their entire investment, but they may not go quietly and force matters beyond 60 to 90 days. Also Sciens Capital Management's, apple cart might be upset if someone else outbids them.
So the soap opera continues...
Colt is talking about selling off assets if bankrupt. I wonder if their equipment is old and worn out or did they update it. If they borrowed money to buy or perhaps lease the newer machinery rather than own it, everybody is going to take a real bath.
Their present machinery is relatively modern, and that is reflected in the fit & finish of their current products. However I have no idea what belongs to the company, and what is leased.
I suspect that eventually the court will publish a list of assets, and it will be a public record.
I suspect that eventually the court will publish a list of assets, and it will be a public record.
Remember this is a Chapter 11 and not a Chapter 7. 11 is a reorganization. I agree with the comments above about the investors and the employees. They are in a very bad place.
But I wouldn't count on Colt closing its doors. I think they will re-try. Time will prove me right or wrong.
But I wouldn't count on Colt closing its doors. I think they will re-try. Time will prove me right or wrong.
alsaqr
Member
If Colt emerges from bankrupcy under Sciens Capital they will be back in bankrupcy within a decade. Colt got this way because Sciens Capital stole the company blind.
http://www.bloomberg.com/bw/article...-owners-have-led-it-to-crisis-after-crisis#p4
http://www.bloomberg.com/bw/article...-owners-have-led-it-to-crisis-after-crisis#p4
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