Gunmaker Colt files for bankruptcy

Colt Defense LLC, the 179-year-old gunmaker that supplies M4 carbines and M16 rifles for the U.S. and foreign militaries, filed for bankruptcy amid delayed government sales and declining demand.

The West Hartford, Ct.-based firearms maker claimed assets of as much as $500 million against liabilities of around the same amount in the Chapter 11 filing made late Sunday, according to Bloomberg Business.

Sciens Capital Management LLC has agreed to take on Colt's assets and debt, and the company remains open for business.

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