Colt has officially filed for bankruptcy, threatening the livelihood of the 179-year-old gunmaker.
A combined dent in demand and delayed government sales has reportedly forced Colt Defense, LLC to declare bankruptcy.
Colt, which makes M16 and M4 carbines for the U.S. military, as well as other foreign governments as well.
Assets and debt were reported as a matching $500 million, and the company may have a lifeline in sponsor Sciens Capital Management LLC. Sciens could take over Colt’s assets and liabilities that are under existing agreements.
The company will remain in business, but has suffered hard times since last November, when a deadline deal to cover a bond payment was struck.