More Colt news

[TackleberryMCS]

Here is a good read I came across today about Colt's financial problems.

http://www.guns.com/2015/04/22/colts-last-ditch-effort-before-bankruptcy/

 

[Crazydoc68]

Someone isnt going to make it......I dont forsee them getting out of this one. At least not anytime soon.

 

[TackleberryMCS]

Someone isnt going to make it......I dont forsee them getting out of this one. At least not anytime soon.

Doc, I feel the same way. Back in 2013, when they lost that $77 million contract to supply the Army with M4s, they fate was sealed. They do not have strong enough sales in the civilian market to support the company's sustained operations. They are way too far in debt. I also do not see the current bondholders going for the deal Colt wants in order to protect their assets when they go under. The main reason is that the bondholders would not be able to liquidate any assets to recover their losses if they agree with Colt's proposal. The way I see it is, Colt has two more years of operation at best. If they cannot become solvent in that time, they will be sold off by the bondholders.

 

[JBryan314]

I have a Colt M4 and I want to buy a Colt 1911. That'll probably be the only Colts I buy. Unless I come cross an affordable Peacemaker.

 

[FrankT]

They are not making guns like the use to, they will be sold to a huge entity for the name and go downhill like Bushmaster, Marlin and the rest have.

 

[MAXman]

Does that mean my old cobra will be worth something?

Quick, colt, die already!!!


It's sad really, one of the big three in American names will go under.

 

[TackleberryMCS]

Does that mean my old cobra will be worth something?

Quick, colt, die already!!!


It's sad really, one of the big three in American names will go under.

This is purely conjecture on my part, but I would expect the older Colts (pre-ban era) to increase I value. This, however, does not mean the market would support the higher value when it comes to selling prices. I would imagine that when Colt goes under, there will be many guys trying to sell their older Colts for inflated prices and there will be some foolish enough to buy them. This is one reason why I would like to get a couple more older Colt ARs now rather than later. Prices are very reasonable right now, for the most part. Some are still jacked up because of the book values, but the market does not support those prices.