Colt Defense Searches for Financing as Default Looms
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Colt Defense LLC is seeking capital to stave off an “expected default” next month as gunmakers suffer from lower defense spending and as consumers purchase fewer firearms.
The 178-year-old weapons maker said it’s “probable” it won’t comply with a loan agreement by Dec. 31 and is seeking an amendment to avoid default, according to a filing yesterday. Colt, which didn’t file its annual report on time because of accounting and liquidity issues, also said it’s uncertain it can make a $10.9 million bond interest payment Nov. 17.