Colt Defense LLC 's preparations to test the market at a bankruptcy auction have added to creditor anxieties about the unsettled state of the lease on the gun maker's manufacturing plant, Dow Jones Daily Bankruptcy Review reported today. When it filed for chapter 11 bankruptcy protection in June, Colt was determined to put itself up for auction in August, with private equity owner Sciens Capital Management as lead bidder. Sciens took its buyout offer off the table after a bondholder coup shifted the balance of power in the case against the equity stakeholder. Colt is moving forward with the auction plan despite the lack of a lead bidder to set a floor price and despite uncertainty about whether the gun maker will be evicted from its Connecticut plant, bondholder lawyer Jeff Jonas said at a court hearing Wednesday.
