Gun maker Colt heads toward bankruptcy showdown with bondholders

Famed U.S. gun maker Colt appears to be headed into a bankruptcy duel in the coming week if its private equity backers and bondholders cannot overcome widely differing views on the best way to heal the company's financial wounds. Sales of Colt's modern sports rifles and handguns fell 30 percent last year and the company's cash had dwindled to $11.1 million by May 22, according to regulatory filings. Colt Defense LLC [CDEFHC.UL], whose M1911 was the primary sidearm for the U.S. military for most of last century, missed a $10.9 million payment last month to holders of $250 million in its senior bonds.

Gun maker Colt heads toward bankruptcy showdown with bondholders source: http://finance.yahoo.com/news/gun-maker-colt-heads-toward-163253401.html