The American gunmaker Colt is currently in a downward financial spiral, CNN Money reports. For over 160 years, Colt has been a key player in the gun industry.
However, the company has reluctantly admitted they have been in a state of financial turmoil since missing a $10.9 million interest payment in May.
The 30-day grace period to make the payment ends June 14th so Colt will be forced to make a variety of decisions regarding the structuring of its debt after the deadline. If the company is unable to properly redistribute its debt, Colt will have to pursue aid under bankruptcy code.
In an attempt to work with bondholders, Colt proposed a restructuring plan that would keep the company afloat. Bondholders themselves, however, are refusing to agree to any plan that would end in losses. The bondholders believe that under bankruptcy code the company would be able to recover the entirety of the bonds’ worth and debt.
With a shining legacy like that of Colt’s, there’s a good chance that another big name American company like Smith and Wesson could be a potential buyer. Since the 1840s, Sam Colt’s company has been the most famous of the American gun manufacturers.