U.S. gun maker Colt Defense LLC said it has filed for chapter 11 bankruptcy protection and that its current sponsor, Sciens Capital Management LLC, has agreed to act as a stalking-horse bidder, Reuters reported today. Colt said that it intends to continue normal business operations through the accelerated sale process with the help of $20 million in credit facilities that its existing lenders have agreed to provide. Sciens Capital proposed to buy all of Colt's assets and assume secured liabilities and those related to employees, customers, vendors and trade creditors, Colt said. Sales of Colt's modern sports rifles and handguns fell 30 percent last year and its cash dwindled to $11.1 million by May 22, according to regulatory filings.
