Colt committee objects to 90-day extension of exclusivity periods

By Mark Reccek

Bethlehem, Pa., Nov. 2 – Colt Defense LLC’s official committee of unsecured creditors objected to the company’s request to extend the exclusive periods for filing a Chapter 11 plan of reorganization and soliciting votes on the plan, according to an Oct. 31 filing with the U.S. Bankruptcy Court for the District of Delaware.

The company is requesting an extension on its exclusive filing period through Jan. 11 from Oct. 13 and an extension of the solicitation period through March 10 from Dec. 11.

The committee principally argues the extensions should not be granted as the company has failed to make good progress toward a consensual plan.

“The plan, like much in these cases, was not negotiated with the committee – which represents a large creditor constituency – prior to filing. Furthermore, the plan provides sciens with inexplicably preferential treatment, including the right to invest on favorable terms, payment of its multi-million dollar legal fees, blanket releases and multi-million dollar consideration in the form of new class A LLC units for its affiliate (NPA) in exchange for extending the term of the West Hartford lease,” the filing said.

The company previously said the extensions are needed to “preserve the status quo pending further disposition by the court, in the event that the ongoing plan process is disrupted or delayed.”

A hearing on the objection is scheduled for Nov. 10.

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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