Tag Archives: BankruptcyLaw

Small Business Chapter 11 Bankruptcy

Chapter 11 Bankruptcies are a powerful tool available to businesses who are facing financial difficulties but have a solid business model.  As opposed to a Chapter 7 Bankruptcy which requires the business to shut its doors, a Chapter 11 gives a company the ability to restructure its debt, pay off its creditors on its own terms and emerge from bankruptcy in a stronger financial position.  There are several facts to remember when a company is considering Chapter 11 Bankruptcy – It is not just for large corporations Some associate Chapter 11 with the larger corporations that have filed – GM, Delta, any number of Trump-owned businesses.  While it is true those companies filed for Chapter 11, the relief is not only available to large companies.  There is no minimum size required to file Chapter 11.  It can be an incredibly powerful tool for small to mid-sized companies as well.  The…
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Colt Defense’s Chapter 11 Bankruptcy Is Almost Over

Colt Defense is nearing the end of its journey through Chapter 11 bankruptcy, and expects to secure an additional $50 million in capital under its reorganization plan. As one of the oldest and most well-known firearms manufacturers in the United States, Colt Defense has provided weapons for Vietnam, the Civil War, World War I and World War II. After filing for Chapter 11 bankruptcy, Colt Defense secured approval from the court to borrow $10 million in debtor-in-possession financing to continue operating. This approval from the bankruptcy court bought Colt Defense time to restructure, survive and find a path forward to becoming profitable again. Sciens Capital Management, Fidelity National Financial and Newport Global Advisors will provide an additional $50 million in financing under the Chapter 11 bankruptcy reorganization. Colt Defense began to struggle financially after losing a major contract with the U.S. military, which had been a major source of business….
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