Colt Defense said it has pulled itself out of bankruptcy Wednesday after compromising with creditors over a plan to engage the final steps of the process.
The plan was delayed by Sciens Capital Management, the private investment firm that owns majority shares of the gun maker, because it could not come up with the $15 million it said it would contribute to implement the restructuring plan, which includes raising a $50 million capital cushion.
Bondholders will contribute $30 million needed for the plan while Sciens will put in $5 million up front and $10 million in early February.
Colt said the plan, which reduces its debt by $200 million, satisfies its creditors, its unionized workforce and the property owners who lease its facilities in West Hartford, Connecticut. The company employs 610 people.
The company’s chief executive officer, Dennis Veilleux, praised the plan and the outcome.
“We were able to restructure our balance sheet while meeting all obligations to our customers, vendors, and suppliers throughout this process,” he said and described the agreement as “a true testament” to the efforts by its investors and workforce.
“We are grateful for their commitment to Colt and we look forward to the future as we build on our heritage as an iconic American brand with renewed vigor and purpose,” he said.
Colt filed for Chapter 11 bankruptcy in June and said it aimed to complete the process by the end of 2015.