Colt Defense LLC [CDEFHC.UL] expects to complete its restructuring and emerge from bankruptcy in the coming weeks, the gunmaker said in a joint statement with the United Auto Workers union (UAW) on Thursday.
Colt, which filed for Chapter 11 protection in June due to falling sales of its sport rifles and the loss of military contracts, won U.S. court confirmation of a plan to reduce debt and boost liquidity on Wednesday.
The gun manufacturer, owned by private equity firm Sciens Capital Management, will emerge from bankruptcy at a time of both rising sales and increasing pressure for U.S. gun control.
Colt said it will have a new lease for its West Hartford, Connecticut facility, control of which had been a point of contention with bondholders during the bankruptcy process.
The company also signed a memorandum of understanding with the UAW, which it said changes retiree health benefits and gives the union representation on the board in an observer status. It did not provide more details.
“Together, we have succeeded in maintaining our contract and securing good jobs with a continued presence in West Hartford,” said Mike Holmes, UAW Local 376 Shop Chair.
(Reporting by Tracy Rucinski in Chicago; Editing by Jeffrey Benkoe)