Investors not biting at Colt’s offer to exchange bonds
Due to lack of participation, Colt Defense extended the deadline for a second time to allow investors to exchange bonds and limit public scrutiny.
The exchange offer is part of a prepackaged plan to reorganize the company, and help Colt prevent or limit the bankruptcy process.
The plan needs 98 percent of investors to participate, but only $14.1 million, or 5.65 percent, of the outstanding principal has been accounted for as of last night — a figure that has not changed since the original deadline on May 11.
Investors now have until May 26 to exchange secured notes for new ones, which are set to payout at 10 percent in 2023. But the new notes come with a caveat: they will not be registered under the Securities Act of 1933, which will reduce how much information Colt must disclose to investors and the public.
In the announcement, Colt said it believes it’s in the best interest of the “respective stakeholders to actively address their capital structure and have commenced discussions with an ad hoc group of holders of the Old Notes” and that “discussions will result in a consensual restructuring transaction.”
If the company gets enough support before the deadline, it will enact the plan, but if investors vote the plan down, the company will seek an alternative option. Also, if Colt does declare bankruptcy the company will still need the the approval of current bondholders.
The pre-packaged plan is the brainchild of Colt working with Mackinac Partners, a financial restructuring firm the Connecticut gun maker retained the services of in March.
Colt has been in this rut since November 2014, when it almost missed a semi-annual payment to bondholders. It has since been swapping debt for debt in order to make necessary payments.
The post Investors not biting at Colt’s offer to exchange bonds appeared first on Guns.com.
Source: http://www.guns.com/2015/05/19/investors-not-biting-at-colts-offer-to-exchange-bonds/
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world. Anyone can join. Anyone can contribute. Anyone can become informed about their world. "United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
LION'S MANE PRODUCT
Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules
Mushrooms are having a moment. One fabulous fungus in particular, lion’s mane, may help improve memory, depression and anxiety symptoms. They are also an excellent source of nutrients that show promise as a therapy for dementia, and other neurodegenerative diseases. If you’re living with anxiety or depression, you may be curious about all the therapy options out there — including the natural ones.Our Lion’s Mane WHOLE MIND Nootropic Blend has been formulated to utilize the potency of Lion’s mane but also include the benefits of four other Highly Beneficial Mushrooms. Synergistically, they work together to Build your health through improving cognitive function and immunity regardless of your age. Our Nootropic not only improves your Cognitive Function and Activates your Immune System, but it benefits growth of Essential Gut Flora, further enhancing your Vitality.
Our Formula includes: Lion’s Mane Mushrooms which Increase Brain Power through nerve growth, lessen anxiety, reduce depression, and improve concentration. Its an excellent adaptogen, promotes sleep and improves immunity. Shiitake Mushrooms which Fight cancer cells and infectious disease, boost the immune system, promotes brain function, and serves as a source of B vitamins. Maitake Mushrooms which regulate blood sugar levels of diabetics, reduce hypertension and boosts the immune system. Reishi Mushrooms which Fight inflammation, liver disease, fatigue, tumor growth and cancer. They Improve skin disorders and soothes digestive problems, stomach ulcers and leaky gut syndrome. Chaga Mushrooms which have anti-aging effects, boost immune function, improve stamina and athletic performance, even act as a natural aphrodisiac, fighting diabetes and improving liver function. Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules Today. Be 100% Satisfied or Receive a Full Money Back Guarantee. Order Yours Today by Following This Link.
