Colt Defense Announces Financing Agreement with Creditors

June 24, 2015 | By Business Wire News

WEST HARTFORD, Conn.

Colt Defense LLC (“Colt” and the “Company”) announced today that it has entered into a consensual agreement under which Colt’s secured lenders will provide $20 million in debtor in possession credit facilities to allow for ordinary course business operations during the Chapter 11 process.

Consistent with the plan announced by the Company earlier this month, the financing provides Colt with adequate liquidity to meet all of its obligations to its customers, vendors, suppliers and employees during a court-supervised restructuring process.

“The financing we have secured today is an important step forward,” said Keith Maib, Chief Restructuring Officer of Colt Defense LLC. “It reflects shared confidence in Colt as an iconic American business among all of the Company’s key stakeholders. As we continue to prepare for and pursue a sale process in accordance with the plan we previously filed with the Court, the terms of this financing also provide us with greater flexibility to reach a final consensual agreement that aligns with our ultimate goal of swiftly and surely deleveraging the Company while maximizing continuity in Colt’s business operations.”

“Most importantly, today’s announcement underscores that nothing has changed in our operations as we remain sharply focused above all on delivering for our customers while also being a good commercial partner to our vendors and suppliers,” Maib concluded.

Perella Weinberg Partners L.P. is acting as financial advisor of the Company, Mackinac Partners LLC is acting as restructuring advisor of the Company and O’Melveny & Myers LLP is the Company’s legal counsel.

For access to documents filed in the United States Bankruptcy Court for the District of Delaware and other general information about these Chapter 11 cases, please visit: http://www.kccllc.net/coltdefense.

About Colt

Colt is one of the world’s leading designers, developers and manufacturers of firearms. The company has supplied civilian, military and law enforcement customers in the United States and throughout the world for more than 175 years. Our subsidiary, Colt Canada Corporation, is the Canadian government’s Center of Excellence for small arms and is the Canadian military’s sole supplier of the C7 rifle and C8 carbine. Colt operates its manufacturing facilities in West Hartford, Connecticut and Kitchener, Ontario. For more information on Colt and its subsidiaries, please visit www.colt.com.

Forward Looking Statements

This press release contains “forward-looking statements.” These statements about Colt’s expectations, beliefs, plans, objectives, assumptions and future events are not statements of historical fact and reflect only Colt’s current expectations regarding these matters. Colt’s actual actions and results may differ materially from what is expressed or implied by these statements due to a variety of factors, including (i) the potential adverse impact of the Chapter 11 filings on Colt’s liquidity or results of operations, (ii) changes in Colt’s ability to meet financial obligations during the Chapter 11 process or to maintain contracts that are critical to Colt’s operations, (iii) the outcome or timing of the Chapter 11 process and the Section 363 process, (iv) the effect of the Chapter 11 filings or the Section 363 process on Colt’s relationships with third parties, regulatory authorities and employees, (v) proceedings that may be brought by third parties in connection with the Chapter 11 process or the Section 363 process, (vi) the Court approval or other conditions or termination events in connection with the Section 363 process, (vii) the increased administrative costs related to the Chapter 11 process; (viii) Colt’s ability to maintain adequate liquidity to fund operations during the Chapter 11 process and thereafter and (ix) other factors listed from time to time in Colt’s filings with Securities and Exchange Commission. Forward-looking statements in this press release speak only as of the date on which they are made and Colt undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.