Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11 / Post-Bankruptcy Stocks

Colt Defense Plan Effective

Colt Defense's Modified Second Amended Joint Plan of Reorganization became effective, and the Company emerged from Chapter 11 protection. The Plan was confirmed on December 16, 2015 and the Court approved modifications to the confirmed Plan on January 12, 2016. The confirmation order states, "If the Sciens Group does not fund $15 million in the aggregate on February 8, 2016, in accordance with the Commitment Term Sheet and Sections 5.4 (a) of the Plan, each holder of an allowed claim in class 4-A (Senior notes claims of participating holders), and Class 6 (General Unsecured claims), other than the Plan Support Parties, shall not be deemed to have granted releases in favor of the Sciens Group in accordance with section 10.4 (b) of the Plan regardless of whether such Holder failed to opt-out of the releases granted therein on its ballot to vote on the Plan. If the Sciens Group funds $15 million in the aggregate by such date and time, each holder of an allowed claim in Class 4-A, Class 4-B, and Class 6 who did not opt-out of granting releases in accordance with the Plan shall be deemed to grant releases in favor of the Sciens Group, among others, in accordance with Section 10.4 (b) of the Plan." Under the Plan, Colt Defense reduced its debt by approximately $200 million, after giving effect to $50 million of new capital raised through the restructuring process. In addition, the Company has executed a long-term lease for its West Hartford Facility and has entered into a memorandum of understanding with the United Auto Workers. Dennis Veilleux, president and C.E.O. of Colt Defense, comments, "It is with profound appreciation to all of our key stakeholders that we share that we have completed the restructuring process and are emerging from Chapter 11 with a solid capital structure, significantly less debt, and much greater financial flexibility." The firearms manufacturer and marketer filed for Chapter 11 protection on June 14, 2015, listing $265 million in pre-petition assets.

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