179 Year Old Gun Maker Colt Defense Files for Chapter 11 Bankruptcy Protection

By Ashwin Subramania - 15 Jun '15 08:58AM

Famed US gun maker Colt Defense LLC has said that it filed for Chapter 11 bankruptcy protection. The company listed assets worth $500 million and also debts of $500 million in its filing on Sunday.

The Connecticut based gun maker was once the standard supplier of M16 rifles and M4 carbines to the US military. However delayed military contracts and the decline in sales, forced the company to make the filing.

"The plan we are announcing and have filed today will allow Colt to restructure its balance sheet while meeting all of its obligations to customers, vendors, suppliers and employees and providing for maximum continuity in the Company's current and future business operations," said Keith Maib, Chief Restructuring Officer of Colt Defense, in a statement.

The company is hopeful that by filing, it will be able to quickly sell its business operations in Canada and the US. Sciens Capital Management has even proposed to buy all of its assets.

Colt Defense has been struggling since November last year when it had to take a $70 million loan from Morgan Stanley to meet its financial obligations.