Colt files for Chapter 11 Bankruptcy protection

Could be a hell of a interesting auction if they are sold off at the end of all this:

Gun maker Colt files for Chapter 11 bankruptcy protection - Fortune

A shame really- time goes on..

bankruptcy

Trboatworks said:

Could be a hell of a interesting auction if they are sold off at the end of all this:

Gun maker Colt files for Chapter 11 bankruptcy protection - Fortune

A shame really- time goes on..

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unfortunately some management seems to use Chapter 11 Bankruptcy as a tool to
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1) get out of paying debts they owe which they cannot legally do any other way
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2) change pension and other employee benefits which they cannot easily do any other way
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3) cancel stock and they create new stock. i have seen $100 stock worth less than $1 when cancelled and new stock created. again they cannot legally do any other way
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as long as a company's management is considered to have not broken any laws they use the laws for their benefit

Yep- can be frustrating as a share holder.
I have carried several through chap 11.

Wake up morning and the position is wiped out- 100% loss.
A couple of months later they issue new stock.

LEAR, VSTN- another I am forgetting
Holders of common are last in line- by the time they file, it's a lonG line ... LOL

Colt wasn't public so no shareholders- still plenty of unsatisfied dept though.

They just signed a $36 million contract to supply M4s to a group of foreign countries.
And besides, they are in a state that is one of the most hostile to their livelihood. Maybe they need to do that do relocate. I think they are re-organizing and union-busting.
Nevertheless, I have bought 3 Colts since January.

Were they new ones? second hand ones don't help the company, same as with machine tools

It would be interesting to know how many members of management are also members of the Bar.

Mark Rand said:

Were they new ones? second hand ones don't help the company, same as with machine tools

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Two of them were, and the third was 97 years old.
I also help Remington out, I think they are having cash flow issues also

You know I bet I'd better go spend that $100 rebate card Colt sent me

This is nothing new for ALL the big gun companies in the US. Winchester and Remington have also been to the edge of the cliff a few times in their history. At one time in the latter part of the 1800's Winchester owned Remington. Remington took it in the shorts from Uncle Sam over some revolvers that all of a sudden were not needed. Foreign sales of the Rolling Block saved their bacon, but Win bought them up at one point. 25 years later Winchester was on the ropes, going broke trying to mimic the Rexall Drug Co. model, applying it to the hardware business. The common denominator to all this is each company went on hard times after the rug was pulled out from under them over Govt contracts. Tooling up for big stuff that didn't materialize or lost to a lower bidder.