Bondholders clash with Colt as U.S. gun maker's bankruptcy begins

A Colt lawyer also told U.S. Bankruptcy Judge Laurie Silverstein in Wilmington, Delaware, that the gun maker planned to sell itself to its current owner, Sciens Management, and wipe out $250 million of bond debt. Colt Defense filed for Chapter 11 bankruptcy on Sunday, after a year of sharply falling sales and dwindling cash that made it hard for the company to meet demand for its sports rifles and handguns. A bondholder attorney told Silverstein that Sciens was to blame for Colt's inability to compete.

Bondholders clash with Colt as U.S. gun maker's bankruptcy begins source: http://finance.yahoo.com/news/bondholders-clash-colt-u-gun-142601515.html