Colt Defense Announces Court Confirmation of Plan of Reorganization
Colt Defense LLC ("Colt" and the "Company") announced that the United States Bankruptcy Court for the District of Delaware (the "Court") has confirmed the Company's Second Amended Joint Plan of Reorganization ("the Plan"). The Plan received full support from all of the Company's stakeholders. Upon completion of the restructuring process, which is expected to occur 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 and the Plan reaffirms the Company's strong relationship with the UAW.
The Plan finalizes a global settlement of all outstanding issues in the cases, achieved through a consensus reached among Colt's key stakeholders, including a consortium of Colt's secured lenders, Morgan Stanley as the lender under Colt's pre-petition and post-petition secured term loan facilities, the official committee of unsecured creditors appointed in Colt's bankruptcy cases, Sciens Capital Management and the landlord at Colt's West Hartford facility.
In conjunction with today's confirmation, Colt also announced that it has reached an agreement with the United Auto Workers Union that resolves issues relating to retiree medical benefits.
"Today we achieved the last important milestone on Colt's path to emerging from Chapter 11 as a stronger and more competitive company," said Dennis Veilleux, President and Chief Executive Officer of Colt Defense LLC. Mr. Veilleux added, "We greatly appreciate the dedication and support of our extraordinary employees during this process, as well as the support we received from our financial stakeholders, Sciens Capital and our customers and vendors."
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, including the Second Amended Plan and related Disclosure Statement, and other general information about these Chapter 11 cases, please visit:http://www.kccllc.net/coltdefense