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| Gun maker Colt files for bankruptcy amid tough US market | Gun maker Colt files for bankruptcy amid tough US market |
| (about 2 hours later) | |
| Connecticut-based gun maker Colt Defense has filed for bankruptcy protection, as it grapples with a heavy debt load. | Connecticut-based gun maker Colt Defense has filed for bankruptcy protection, as it grapples with a heavy debt load. |
| The company says it plans to continue its normal business operations during its restructuring. | The company says it plans to continue its normal business operations during its restructuring. |
| The company is struggling with more than $350m (£225m) in debt, as well as waning sales. | The company is struggling with more than $350m (£225m) in debt, as well as waning sales. |
| Colt's fortunes were hurt by a loss of a contact in 2013 to supply the US army with its M4 assault rifle. | |
| Keith Maib, the company's chief restructuring officer, said in a statement: "Colt remains open for business and our team will continue to be sharply focused on delivering for our customers and being a good commercial partner to our vendors and suppliers". | Keith Maib, the company's chief restructuring officer, said in a statement: "Colt remains open for business and our team will continue to be sharply focused on delivering for our customers and being a good commercial partner to our vendors and suppliers". |
| Missed payment | |
| Colt has been plagued by financial problems in recent months. | |
| Last November Colt took out a $70m loan from Morgan Stanley to help make an interest payment. | |
| But last month it missed a $10m interest payment. | |
| Last year sales of its sports rifles and handguns fell 30%. | |
| The company has a long US history, known for making American firearms for more than 150 years. | |
| The company previously filed for bankruptcy protection in 1992, emerging again two years later. |