A month ago, Colt was in a state of financial ruin and on the brink of bankruptcy.
The company was on the verge of being acquired by American Steel, a conglomerate that has been accused of fraud and is known for its poor record-keeping and poor workmanship.
As of August 1, Colt’s stock price had fallen from $15 to $3.50.
The stock price is now down by about half.
In a statement, Colt Industries said it was making “significant progress” to stabilize the company and that it was in discussions with potential creditors.
In response to the allegations, Colt issued a statement saying that it had taken action to prevent the bankruptcy from impacting its operations.
“As we’ve stated previously, we’ve taken the appropriate steps to protect our company’s assets and assets of its employees and shareholders, including providing an opportunity for the board of directors to review and potentially approve all of our current and future financial plans,” the company said.
“We’ve also taken action, including restructuring and a review of our operations and our capital structure, in order to address this potential issue.”