Colt Defense LLC announced the approval of the Disclosure Statement for its Second Amended Plan of Reorganization (“the Plan”) by the U.S. Bankruptcy Court for the District of Delaware. The completion of this important milestone in Colt’s Chapter 11 cases will allow creditors to vote on the Plan, which is fully consensual and embodies a global settlement of all outstanding issues in the cases, as soon as next week.
“The approvals we received today represent a significant achievement and another important step forward for Colt as well as its employees, customers, suppliers and vendors”
The Plan to be voted on reflects a consensus reached among Colt’s key stakeholders, including a consortium of Colt’s secured lenders, Morgan Stanley as the lender under Colt's pre-petition and post-petition secured term loan facilities, the official committee of unsecured creditors appointed in Colt’s bankruptcy case, Sciens Capital Management and the landlord at Colt’s West Hartford facility. If approved, the Plan will allow Colt to raise substantial new equity and debt to meet its business and capital needs, restructure its pre-bankruptcy debts, provide meaningful recoveries to creditors and remain in its existing production facility in West Hartford. Approval of the Disclosure Statement will let creditors vote on the Plan. If the Plan is approved the Company plans to emerge from Chapter 11 before the end of the year.
“The approvals we received today represent a significant achievement and another important step forward for Colt as well as its employees, customers, suppliers and vendors,” said Dennis Veilleux, Chief Executive Officer of Colt Defense LLC. “Thanks to the dedication and diligent efforts of all of our stakeholders, 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 as an iconic American brand.”
The Company filed the Second Amended Plan and related Disclosure Statement on November 10, 2015. A copy of the Plan and Disclosure Statement is available at http://www.kccllc.net/coltdefense.
Votes on the Plan must be received by the Company’s voting agent, Kurtzman Carson Consultants LLC, by December 7, 2015, unless the deadline is extended. Solicitation materials are expected to be mailed to all creditors entitled to vote on the Plan in the coming days. A hearing to consider confirmation of the Plan is currently scheduled for December 16, 2015.