TexasCHLforum.com

The following is my opinion.

To me this looks like a case where a manufacturer has concocted a way to use the bankruptcy process to leave behind their debts and obligations. And maybe even their union contracts (That remains to be seen).

Their unsecured creditors and suppliers suffer the bulk of the financial burden.

All of that MIGHT be palatable (not really), if it were not for the fact that Sciens Capital management is putting back into place some of the very same managers that are largely responsible for the financial trouble that Colt now finds itself in. Brilliant.

So... we'll be seeing this story again in 5-7 years. Rinse. Repeat.

Colt Defense Announces Fast Track Restructuring

I certainly do not have the inside scoop on this.. but as an outside observer, this looks (my personal opinion, nothing more) like a case where former Colt management has lived large on the backs of it's suppliers and possibly its employees (are pensions currently underfunded?), and now they're flushing away the debt and starting over. I would love to see some data that says I'm wrong. Certainly possible.

I'm open to another scenario to explain how one of the most well respected brands in the firearms industry managed to bankrupt itself during one of the highest sales volume periods their industry has ever seen.