Jan 13 (Reuters) — Famed U.S. gun maker Colt Defense LLC said on Wednesday it has emerged from bankruptcy after concluding a financial restructuring in which it reduced its debt by about $200 million.
Dennis Veilleux, Colt’s president and chief executive officer, said in a statement that Colt, which raised $50 million in new capital, would come out of Chapter 11 bankruptcy with a “solid capital structure, significantly less debt and much greater financial flexibility.”
The announcement follows a surge in gun sales at the end of last year and as gun control politics heat up.
Last week, President Barack Obama announced rules on gun sales he said he could impose without Congress in a bid to reduce gun violence.
Hurt by the loss of military contracts and falling sales of sport rifles, Colt filed for bankruptcy last June.
The company last month won U.S. court confirmation of a plan to cut its debt and boost liquidity and said it would have a new lease for its West Hartford, Connecticut facility.
Control of the plant had been a point of contention with bondholders during the company’s bankruptcy.
Colt said it now has a long-term lease on the facility.