Declining Sales Lead Colt Defense Towards Default

Colt Warns Of Possible Default, Likely To Miss $10.9 Million Payment

 

 

 

” With diminishing sales and unlikeliness of paying bondholders, Colt Defense, LLC warns of a bleak financial future.

  The privately held company announced yesterday in a filing with the Securities and Exchange Commission possible default as it’s likely to miss a $10.9 million payment to bondholders on Nov. 17. If skipped, Colt has a 30-day grace period, but if it does not pay by Dec. 15 the company will be in default.

  If a company defaults without first declaring bankruptcy, creditors will likely force it into bankruptcy and liquidate the assets or the company will operate under the shield of a bank, limiting major operational decisions.

  Colt blames its financial woes on a continued decline in demand for rifles and handguns in the commercial market, and delays in government sales. The company reported in June a $20.5 million loss so far in 2014, down from a $9.5 million profit for the same time in 2013.

  Like the iconic West Hartford, Connecticut, company, other gun makers have also seen a decline in demand. Smith & Wesson reported a net income of $14.6 million, down from $26.5 million for the quarter last year. Profits for the industry giant, Sturm, Ruger and Company, plunged 76.3 percent, from $28.6 million this time last year to $6.8 million for the past three months. “

Thanks to Guns.com

—

Army Cronyism Results In Halt To M4 Replacement Trials

Army Quits Tests After Competing Rifle Outperforms M4A1 Carbine

 

 

 

 

” A competing rifle outperformed the Army’s favored M4A1 carbine in key firings during a competition last year before the service abruptly called off the tests and stuck with its gun, according to a new confidential report.

  The report also says the Army changed the ammunition midstream to a round “tailored” for the M4A1 rifle. It quoted competing companies as saying the switch was unfair because they did not have enough time to fire the new ammo and redesign their rifles before the tests began.

  Exactly how the eight challengers — and the M4 — performed in a shootout to replace the M4, a soldier’s most important personal defense, has been shrouded in secrecy.

  But an “official use only report” by the Center for Naval Analyses shows that one of the eight unidentified weapons outperformed the M4 on reliability and on the number of rounds fired before the most common type of failures, or stoppages, occurred, according to data obtained by The Washington Times. “

 

Read more

 

 

 

 

 

 

 

 

 

—

Front Line GI’s Taking Self-Modification Of M4 Rifle To Improve Effectiveness

Soldiers At War Modify M4 To Boost Reliability

 

 

” U.S. Army soldiers at war in Afghanistan have made personal modifications to the M4 carbine to improve its effectiveness, according to a news report.

  Army Senior Warrant Officer Russton Kramer, a longtime Green Beret, said he and fellow Special Forces soldiers buy off-the-shelf triggers and other components and overhaul the M4A1 commando version of the assault rifle, according to an article by Rowan Scarborough, a reporter for The Washington Times.

“ The reliability is not there,” the Silver Star recipient told the reporter. “I would prefer to use something else. If I could grab something else, I would.”

 

 

 

  The two-part series is the latest to investigate the reliability of the Army’s standard-issue carbine made by Colt Defense LLC. The weapon has been upgraded by the service in recent years, but remains in essence a shorter, lighter version of the Vietnam-era M16.”

 

Military.com has more and the Washington Times has a very in-depth story on the unreliability of the M4 . 

 

 

    So our most important government employees are supplied with second rate firearms with which to do battle and if they are lucky enough to survive their tours they get to come home and subsist on food stamps . We are being led by the best … What a corrupt sewer is DC .

 

 

 

 

 

 

 

 

—