Weapon manufacturer Colt Defense has declared itself bankrupt

Colt Defense LLC, a weapons company, has filed for bankruptcy.

The bankruptcy petition was filed late on the evening of June 14 at the Wilmington, Delaware court. The Wilmington Trust Company, registered in this city, is listed in court documents as one of the largest creditors of Colt Defense LLC. Colt Defense LLC owes this company an estimated $ 261 million.

In a statement to the court, Colt Defense LLC reported more than $ 500 million in debt, with a combined asset value of approximately $ 500 million.

The reason for the unsatisfactory financial condition of the company, according to the documents, was a decrease in demand for their products among the civilian population, as well as the termination of a large contract with the US military.