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O’Melveny Represents Colt Defense in Successful Chapter 11 Restructuring

January 14, 2016

 

Contact:
Julie Fei
O’Melveny & Myers LLP
213.430.7792
jfei@omm.com

NEW YORK--JANUARY 14, 2016 --
O’Melveny & Myers LLP represented Colt Defense through its successful financial restructuring and emergence from its Chapter 11 process. Colt has significantly restructured and reduced its debt, improved its capital structure, and enhanced its liquidity profile.

The O’Melveny team was led by partners John Rapisardi and Peter Friedman and counsel Joseph Zujkowski.

About O’Melveny & Myers LLP
With approximately 700 lawyers in 15 offices worldwide, O’Melveny & Myers LLP helps industry leaders across a broad array of sectors manage the complex challenges of succeeding in the global economy. We are a values-driven law firm, guided by the principles of excellence, leadership, and citizenship. Our commitment to these values is reflected in our dedication to improving access to justice through pro bono work and championing initiatives that increase the diversity of the legal profession. For more information, please visit www.omm.com.

The following press release was issued by Colt Defense:

COLT DEFENSE EMERGES FROM CHAPTER 11 RESTRUCTURING - Iconic American Brand Looks to Future with Stronger Capital Structure and Enhanced Liquidity

WEST HARTFORD, Conn. – January 13, 2016 – Colt Defense LLC (“Colt” or the “Company”), today announced it has completed its financial restructuring and emerged from its Chapter 11 process. The Company concluded its restructuring after completing all required actions and satisfying all remaining closing conditions to its Amended Joint Plan of Reorganization (the “Plan”), which was confirmed by the United States Bankruptcy Court for the District of Delaware (the “Court”) last December.

Under the Plan, Colt has significantly restructured and reduced its debt, improved its capital structure, and enhanced its liquidity profile. Specifically, the Company has reduced its debt by approximately $200 million, after giving effect to $50 million of new capital raised through the restructuring process.

In addition, the Company has executed a long-term lease for its West Hartford Facility and has entered into a Memorandum of Understanding with the United Auto Workers that reaffirms its strong relationship with the union and its workforce.

“It is with profound appreciation to all of our key stakeholders that we share that we have completed the restructuring process and are emerging from Chapter 11 with a solid capital structure, significantly less debt, and much greater financial flexibility,” said Dennis Veilleux, President and Chief Executive Officer of Colt Defense LLC. Mr. Veilleux added. “Importantly, we were able to restructure our balance sheet while meeting all obligations to our customers, vendors, and suppliers throughout this process. This is a true testament to the hard work and support of our dedicated employees, as well as an affirmation of a shared confidence among our key stakeholders and creditors that Colt is on the right path. We are grateful for their commitment to Colt and we look forward to the future as we build on our heritage as an iconic American brand with renewed vigor and purpose.”

Perella Weinberg Partners L.P. acted as financial advisor of the Company, Mackinac Partners LLC acted as restructuring advisor of the Company and O’Melveny & Myers LLP acted as the Company's legal counsel.

GLC Advisors & Co., LLC acted as financial advisor and Brown Rudnick LLP acted as the legal counsel to the Ad Hoc Group of bondholders.

For access to documents filed in the United States Bankruptcy Court for the District of Delaware, including the Second Amended Plan and related Disclosure Statement, and other general information about these Chapter 11 cases, please visit: http://www.kccllc.net/coltdefense.

About Colt
Colt is one of the world’s leading designers, developers and manufacturers of firearms. The company has supplied civilian, military and law enforcement customers in the United States and throughout the world for more than 175 years. Our subsidiary, Colt Canada Corporation, is the Canadian government’s Center of Excellence for small arms and is the Canadian military’s sole supplier of the C7 rifle and C8 carbine. Colt operates its manufacturing facilities in West Hartford, Connecticut and Kitchener, Ontario. For more information on Colt and its subsidiaries, please visit www.colt.com.

Forward Looking Statements
This press release contains “forward-looking statements.” These statements about Colt’s expectations, beliefs, plans, objectives, assumptions and future events are not statements of historical fact and reflect only Colt’s current expectations regarding these matters. Colt’s actual actions and results may differ materially from what is expressed or implied by these statements due to a variety of factors, including (i) the potential adverse impact of the Chapter 11 filings on Colt’s liquidity or results of operations, (ii) changes in Colt’s ability to meet financial obligations during the Chapter 11 process or to maintain contracts that are critical to Colt’s operations, (iii) the outcome or timing of the Chapter 11 process and the Section 363 process, (iv) the effect of the Chapter 11 filings or the Section 363 process on Colt’s relationships with third parties, regulatory authorities and employees, (v) proceedings that may be brought by third parties in connection with the Chapter 11 process or the Section 363 process, (vi) the Court approval or other conditions or termination events in connection with the Section 363 process, (vii) the increased administrative costs related to the Chapter 11 process; (viii) Colt’s ability to maintain adequate liquidity to fund operations during the Chapter 11 process and thereafter and (ix) other factors listed from time to time in Colt’s filings with Securities and Exchange Commission. Forward-looking statements in this press release speak only as of the date on which they are made and Colt undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Contacts
Sard Verbinnen & Co.
Matt Benson / Alyssa Linn
212-687-8080 / 310-201-2040