Monday, June 15, 2015

Colt files Ch. 11 bankruptcy

Colt is officially filing Chapter 11 bankruptcy which will allow restructuring of debt. According to Wall Street Journal, Colt is looking to sell its business in order to cut down the debt.

Colt has been trying to sell its repackaged debt to current debt holders, but most have rejected the offer.

There were a lot of troubles plaguing Colt including loss of government contracts as well as management's lack fo financial discipline and pension costs for retired workers.

From: WSJ