Colt's bankruptcy not expected to impact military purchases: One of the U.S. military's top firearms manufacturers has filed for Chapter 11 bankruptcy.
Colt Defense LLC, the military-oriented branch of the firearms producer, filed for bankruptcy reorganization Sunday. The company produces the Army and Marines' M16 and M4 rifles, as well as specialty pistols for the Corps.
Colt officials say the filing should not impact military purchases since the company has secured funds to continue operating while it reorganizes its finances.
"The plan we are announcing and have filed ... will allow Colt to restructure its balance sheet while meeting all of its obligations to customers, vendors, suppliers and employees and providing for maximum continuity in the company's current and future business operations," Keith Maib, Colt Defense's chief restructuring officer, said in a statement.
Colt currently produces pistols for the U.S. military, including the Marine Corps' M45 Close Quarters Battle Pistol. A tuned M1911 patter pistol, the M45 is popular with elite forces like critical skills operators with Marine Corps Forces Special Operations Command. Colt won a $22.5 million contract in the summer of 2012 to produce up to 4,000 for delivery by 2017.
