TexasBill
Member
Moody's Investment Service has issued a credit advisory saying that Colt Defense's plan to restructure its debt is a warning sign that the company is in serious trouble.
Colt Defense acquired Colt Holding Corp. the parent company of Colt's Manufacturing Company in July 2013 so this would affect all Colt products.
Colt wants to exchange its existing notes or have its shareholders approve a Chapter 11 bankruptcy. Colt has mortgaged basically all its assets as surety for the notes.
A reorganization isn't that bad; happens all the time. However, in Colt's case, if the plans don't work out, Moody's says "its likelihood of remaining a going concern would be uncertain."
In other words, Colt would go under.
Maybe it's time for Colt to follow through on what they told me at the 2013 NRA Convention in Houston: bring back the nice double-action revolvers they let go by the wayside.
I, for one, wouldn't mind paying less than a king's ransom for an Anaconda.
Colt Defense acquired Colt Holding Corp. the parent company of Colt's Manufacturing Company in July 2013 so this would affect all Colt products.
Colt wants to exchange its existing notes or have its shareholders approve a Chapter 11 bankruptcy. Colt has mortgaged basically all its assets as surety for the notes.
A reorganization isn't that bad; happens all the time. However, in Colt's case, if the plans don't work out, Moody's says "its likelihood of remaining a going concern would be uncertain."
In other words, Colt would go under.
Maybe it's time for Colt to follow through on what they told me at the 2013 NRA Convention in Houston: bring back the nice double-action revolvers they let go by the wayside.
I, for one, wouldn't mind paying less than a king's ransom for an Anaconda.