Colt granted access to $6 million of DIP loan; next hearing June 22

By Caroline Salls

Pittsburgh, June 17 – Colt Defense LLC received interim access to $6 million of a proposed $20 million of debtor-in-possession financing, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The company said it can access $6 million as an initial draw under Tuesday’s order and another $4 million under a subsequent second interim order. The second interim hearing is scheduled for June 22.

The DIP financing is comprised of a $6.67 million senior DIP loan and a $13.33 million term DIP facility.

Colt said the facilities will allow for continuation of operations in the ordinary course of business during the Chapter 11 process.

The agent for the senior facility is Cortland Capital Market Services LLC, and the agent for the term facility is Wilmington Savings Fund Society, FSB.

Interest will be 12½%.

The DIP facility will mature on the earliest of 120 days after closing, the closing date of the asset sale, the effective date of a Chapter 11 plan and the date of acceleration of the loans.

Colt Defense, a West Hartford, Conn., manufacturer of firearms, filed for bankruptcy on June 14. The Chapter 11 case number is 15-11296.

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