Joint Statement of the UAW and Colt Regarding Court Confirmation of a Plan to Exit Bankruptcy by the End of the Year
By Business Wire News
By Business Wire News
WEST HARTFORD, Conn.
Colt Defense LLC (“Colt” or the “Company”) and the United Auto Workers Union (“UAW”) have issued the following joint statement regarding yesterday’s court confirmation of Colt’s plan of reorganization:
The UAW and Colt reached agreement on a Memorandum of Understanding (“MOU”) yesterday morning that led to court confirmation of Colt’s plan of reorganization. With this confirmation, Colt expects to complete the restructuring process and exit bankruptcy in the coming weeks. The plan will significantly restructure and reduce the Company’s debt, improve its capital structure and enhance its liquidity profile. The Company will also have a new lease for its West Hartford Facility.
The MOU reaffirms the Company’s strong relationship with the Union. Under the MOU, Colt and the Union agree to work together to find efficiencies within the current collective bargaining agreement. The only changes to the contract are modifications of retiree health benefits and representation of the Union on the Board of Directors. With regard to the latter, going forward, the Union’s representative on the Board will have observer status.
“This is a good day for Colt and also the hard working Union members that stayed the course throughout this entire reorganization process,” said Mike Holmes, UAW Local 376 Shop Chair. “Together, we have succeeded in maintaining our contract and securing good jobs with a continued presence in West Hartford.”
“We are very pleased to have received plan confirmation and execution of the MOU with the Union. We are proud of our workforce and the dedication that they have given Colt during this difficult restructuring process. We are confident in our future in large part because of the solid foundation that we have with the Union and the world class craftsmanship and skills of our Union employees,” added Dennis Veilleux, CEO of Colt.
“UAW members at Colt have been the foundation of our Union’s historical role in Connecticut’s manufacturing base. We will do everything in our power to see that these good jobs continue for generations to come,” said Julie Kushner, Director of UAW Region 9A.
Kushner, Holmes and Veilleux stated their shared belief that “working together, Colt and the UAW have achieved their common goal: a strong Company that provides both good jobs and fair treatment to the Colt retirees who helped build this iconic company. Colt and UAW are committed to building a strong Colt for the future.”
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.
About The UAW
UAW Region 9A represents 50,000 workers in diverse occupations throughout eastern New York (including the New York City metropolitan area, the Hudson Valley and the Capital District area), Connecticut, Massachusetts, Rhode Island, New Hampshire, Vermont, Maine and Puerto Rico.
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.
Sard Verbinnen & Co.
Matt Benson / Alyssa Linn
212-687-8080 / 310-201-2040