Colt Defense announces next step in Chapter 11 plans

Colt Defense said this week it has taken the next step to emerge from Chapter 11 bankruptcy protection with the approval of the disclosure statement for its second amended plans of reorganization.

As a result, creditors will be able to vote on the plan as soon as next week, the company said.

"If approved, the Plan will allow Colt to raise substantial new equity and debt to meet its business and capital needs, restructure its pre-bankruptcy debts, provide meaningful recoveries to creditors and remain in its existing production facility in West Hartford, [CT]," Colt said in its announcement. "If the Plan is approved the Company plans to emerge from Chapter 11 before the end of the year."