WEST HARTFORD, Conn.–(BUSINESS WIRE)–Colt Defense LLC (“Colt” and the “Company”) today announced that the
United States Bankruptcy Court for the District of Delaware (the
“Court”) has confirmed the Company’s Second Amended Joint Plan of
Reorganization (“the Plan”). The Plan received full support from all of
the Company’s stakeholders. Upon completion of the restructuring
process, which is expected to occur in the coming weeks, the Plan will
significantly restructure and reduce the Company’s debt, improve its
capital structure and enhance its liquidity profile. The Company will
also have a new lease for its West Hartford Facility and the Plan
reaffirms the Company’s strong relationship with the UAW.

The Plan finalizes a global settlement of all outstanding issues in the
cases, achieved through a consensus reached among Colt’s key
stakeholders, including a consortium of Colt’s secured lenders, Morgan
Stanley as the lender under Colt’s pre-petition and post-petition
secured term loan facilities, the official committee of unsecured
creditors appointed in Colt’s bankruptcy cases, Sciens Capital
Management and the landlord at Colt’s West Hartford facility.

In conjunction with today’s confirmation, Colt also announced that it
has reached an agreement with the United Auto Workers Union that
resolves issues relating to retiree medical benefits.

“Today we achieved the last important milestone on Colt’s path to
emerging from Chapter 11 as a stronger and more competitive company,”
said Dennis Veilleux, President and Chief Executive Officer of Colt
Defense LLC. Mr. Veilleux added, “We greatly appreciate the dedication
and support of our extraordinary employees during this process, as well
as the support we received from our financial stakeholders, Sciens
Capital and our customers and vendors.”

Perella Weinberg Partners L.P. is acting as financial advisor of the
Company, Mackinac Partners LLC is acting as restructuring advisor of the
Company and O’Melveny Myers LLP is the Company’s legal counsel.

For access to documents filed in the United States Bankruptcy Court for
the District of Delaware, including the Second Amended Plan and related
Disclosure Statement, and other general information about these Chapter
11 cases, please visit: http://www.kccllc.net/coltdefense.

About Colt

Colt is one of the world’s leading designers, developers and
manufacturers of firearms. The company has supplied civilian, military
and law enforcement customers in the United States and throughout the
world for more than 175 years. Our subsidiary, Colt Canada Corporation,
is the Canadian government’s Center of Excellence for small arms and is
the Canadian military’s sole supplier of the C7 rifle and C8 carbine.
Colt operates its manufacturing facilities in West Hartford, Connecticut
and Kitchener, Ontario. For more information on Colt and its
subsidiaries, please visit www.colt.com.

Forward Looking Statements

This press release contains “forward-looking statements.” These
statements about Colt’s expectations, beliefs, plans, objectives,
assumptions and future events are not statements of historical fact and
reflect only Colt’s current expectations regarding these matters. Colt’s
actual actions and results may differ materially from what is expressed
or implied by these statements due to a variety of factors, including
(i) the potential adverse impact of the Chapter 11 filings on Colt’s
liquidity or results of operations, (ii) changes in Colt’s ability to
meet financial obligations during the Chapter 11 process or to maintain
contracts that are critical to Colt’s operations, (iii) the outcome or
timing of the Chapter 11 process and the Section 363 process, (iv) the
effect of the Chapter 11 filings or the Section 363 process on Colt’s
relationships with third parties, regulatory authorities and employees,
(v) proceedings that may be brought by third parties in connection with
the Chapter 11 process or the Section 363 process, (vi) the Court
approval or other conditions or termination events in connection with
the Section 363 process, (vii) the increased administrative costs
related to the Chapter 11 process; (viii) Colt’s ability to maintain
adequate liquidity to fund operations during the Chapter 11 process and
thereafter and (ix) other factors listed from time to time in Colt’s
filings with Securities and Exchange Commission. Forward-looking
statements in this press release speak only as of the date on which they
are made and Colt undertakes no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law.