As a follow-up to a story about Colt Defense LLC’s recent bankruptcy filing, Law Shield would like to inform our members that Colt has entered into a consensual agreement, under which Colt’s secured lenders will provide $20 million in debtor in possession credit facilities to allow for ordinary course business operations during the Chapter 11 process.
A company release said the financing provides Colt with adequate liquidity to meet all of its obligations to its customers, vendors, suppliers and employees during a court-supervised restructuring process.
“The financing we have secured today is an important step forward,” said Keith Maib, chief restructuring officer of Colt Defense LLC. “It reflects shared confidence in Colt as an iconic American business among all of the company’s key stakeholders. As we continue to prepare for and pursue a sale process in accordance with the plan we previously filed with the Court, the terms of this financing also provide us with greater flexibility to reach a final consensual agreement that aligns with our ultimate goal of swiftly and surely deleveraging the Company while maximizing continuity in Colt’s business operations.”
“Most important, today’s announcement underscores that nothing has changed in our operations,” Maib said.
Perella Weinberg Partners L.P. is acting as financial advisor of the Company, Mackinac Partners LLC is acting as restructuring advisor of the Company and O’Melveny & Myers LLP is the Company’s legal counsel.
For access to documents filed in the United States Bankruptcy Court for the District of Delaware and other general information about these Chapter 11 cases, click here.
Click here to see our U.S. Law Shield Facebook page item about the bankruptcy.