West Hartford based Colt Defense could see its bankruptcy reorganization plan voted on by creditors as early as next week. The financially troubled gunmaker received approval of its disclosure plan for its second amended plan of reorganization in federal bankruptcy court on Tuesday.
The plan, according to a statement from Colt, reflects a consensus reached among its key stakeholders, including a consortium of secured lenders, Morgan Stanley, the official committee of unsecured creditors appointed in Colt’s bankruptcy case, Sciens Capital Management and the landlord at Colt’s West Hartford facility.
“The approvals we received represent a significant achievement and another important step forward for Colt as well as its employees, customers, suppliers and vendors,” said Dennis Veilleux, Colt Defense CEO. “We are on a path to emerge from restructuring by the end of this year on the firm footing we need to execute our turnaround plan, supported by financing that reflects a spirit of cooperation and shared confidence in Colt.”
In June, Colt received a $20 million credit line that allowed the gun manufacturer to continue operations during its Chapter 11 restructuring. Colt filed for Chapter 11 in June after an alternate plan to convince shareholders to exchange their existing bonds for longer-term bonds with higher interest rates failed.