Colt Defense LLC - FORM 8-K - EX-99.1

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8-K - 8-K - Colt Defense LLC	a15-22134_18k.htm

Exhibit 99.1

Case 15-11296-LSS Doc 627 Filed 10/30/15

UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

In re Colt Holding Company LLC		Case No. 15-11296
		Reporting Period: 8/31/15 – 10/4/15

MONTHLY OPERATING REPORT

Submit copy of report to any official committee appointed in the case.

REQUIRED DOCUMENTS	Form No.	Document Attached	Explanation Attached	Affidavit/ Supplement Attached
Schedule of Cash Receipts and Disbursements	MOR-1	Yes
Bank Reconciliation	MOR-1a	Yes
Schedule of Professional Fees Paid	MOR-1b	Yes
Copies of bank statements			Note 1
Cash disbursements journals			Note 1
Statement of Operations	MOR-2	Yes
Balance Sheet	MOR-3	Yes
Status of Post-petition Taxes	MOR-4	Yes
Copies of IRS Form 6123 or payment receipt			Note 1
Copies of tax returns filed during reporting period			Note 1
Summary of Unpaid Post-petition Debts	MOR-4	Yes
Listing of aged accounts payable	MOR-4		Note 1
Accounts Receivable Reconciliation and Aging	MOR-5	Yes
Debtor Questionnaire	MOR-5	Yes

(1) Due to system constraints and/or the volume of records, these items have not been submitted

I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents are true and correct to the best of my knowledge and belief.

/s/ Dennis Veilleux		10/30/2015
Signature of Authorized Individual*		Date


Dennis Veilleux		Pres/CEO
Printed Name of Authorized Individual		Title of Authorized Individual

*Authorized individual must be an officer, director or shareholder if debtor is a corporation; a partner if debtor is a partnership; a manager or member if debtor is a limited liability company.

Colt Holding Company LLC		Case No.: 15-11296
MOR-1: Schedule of Receipts & Disbursements (Unaudited) - Colt Defense - US		Reporting Period: 8/31/15-10/4/15
September ‘15 (August 31-October 4)


	BANK ACCOUNTS - Colt Defense - US																																									CURRENT MONTH
	Wells Fargo Operating - 2949			Wells Fargo Payroll - 3093			Wells Fargo Depository- 8611			Wells Fargo Accounts Payable- 0355			Wells Fargo Utility Deposit- 5957 (New in September)		Wells Fargo Operating - 3119		Wells Fargo CD Operating - 3127		Wells Fargo NCHC Operating- 3150		Wells Fargo Operating - 4004			Wells Fargo- 3143		Bank of America- 9395			Bank of America- 4636		Bank of America- 7604		Bank of America- 5012		Interaudi Bank- 3410		JPMorgan- 1103		BMO Harris Bank- 6366			ACTUAL
BANK CASH BEGINNING OF MONTH	11,220,392			—			—			—			—		107,000		23,500		23,000		12,653			—		2,500			1,160		—		—		484,755		849,603		1,340,769			14,065,332

RECEIPTS
Cash Sales																																										—
Accounts Receivable	—			—			13,503,339			—			—		—		—		—		—			—		27,999			29,763		—		—		80		—		—			13,561,181
Loans and Advances																																										—
Sale of Assets																																										—
Other (attach list)																																										—
Transfers (from dip accts)																																										—
Intercompany Transfers							258,948																																			258,948
TOTAL RECEIPTS	$	—		$	—		$	13,762,287		$	—		$	—	$	—	$	—	$	—	$	—		$	—	$	27,999		$	29,763	$	—	$	—	$	80	$	—	$	—		13,820,129

Disbursements
Net Payroll				2,684,824											51,222																											2,736,046
Payroll Taxes				1,326,192											25,626																											1,351,818
401K	324,690														5,892																											330,582
Expense Reports	65,500																																									65,500
Insurance Claims	1,006,410														238																											1,006,648
Government Agencies	—																																									—
Bank Fees	45,200																				56					37			1,122										499			46,914
Inventory	9,807,890																																									9,807,890
Freight	236,730																																									236,730
Maintenance	256,050																																									256,050
Supplies MRO	688,840																																									688,840
Outside Services	216,330																																									216,330
Utilities	269,650																																									269,650
Information Technology	74,520																																									74,520
International Comm	64,290																																									64,290
Domestic Comm	79,540																																									79,540
Administration	180,010																																									180,010
Insurance premiums	112,170														987																											113,157
Legal																																							32,091			32,091
Marketing	149,160																																									149,160
Consulting	97,690																																									97,690
Rent	143,060																																									143,060
Misc	110,163																																						187,546			297,709
Property Tax																																										—
Restructuring, Legal & Advisors	601,048																																									601,048
Intercompany Transfer (Colt Canada)	120,134																																									120,134
Interest	2,059,970																																									2,059,970
O/S checks & reconciling items	5,187			64,360			—			2,106,939																																2,176,486
TOTAL DISBURSEMENTS	$	16,714,232		$	4,075,376		$	—		$	2,106,939		$	—	$	83,965	$	—	$	—	$	56		$	—	$	37		$	1,122	$	—	$	—	$	—	$	—	$	220,136		$	23,201,863

Bank Account Transfers	$	10,498,192		$	4,011,016		$	(13,762,287	)	$	—		$	30,146	$	87,195					$	—		$	—	$	(30,462	)	$	1,340	$	—	$	—	$	—	$	—	$	(835,140	)	$	—


NET CASH FLOW	$	(6,216,040	)	$	(64,360	)	$	—		$	(2,106,939	)	$	30,146	$	3,230	$	—	$	—	$	(56	)	$	—	$	(2,500	)	$	29,981	$	—	$	—	$	80	$	—	$	(1,055,276	)	$	(9,381,735	)

Cash - End of Month	$	5,004,352		$	(64,360	)	$	—		$	(2,106,939	)	$	30,146	$	110,230	$	23,500	$	23,000	$	12,597		$	—	$	—		$	31,141	$	—	$	—	$	484,835	$	849,603	$	285,493		$	4,683,597

Colt Holding Company LLC		Case No.: 15-11296
MOR-1: Schedule of Receipts & Disbursements (Unaudited) - Colt Defense - Canada		Reporting Period: 8/31/15-10/04/15
Sep ‘15 (Aug 31 - Oct 4)

	BANK ACCOUNTS - CANADA (in USD)																														CURRENT MONTH
	BoA #3203 - A/R			BoA #3211 - A/P			BoA #3104 - A/R		BoA #3112 - A/P			BoA #3419 - A/R			BoA #3401 - A/P		WF #7549 - A/R			WF #7531 - A/P		WF #8241 - A/R		WF #8258 - A/P			WF #7564 - A/R		WF #7556 - A/P		ACTUAL

CASH BEGINNING OF MONTH (1)	155,564			867			—		2,566			5,587			56		0			1,015,554		—		394,237			—		102,129		1,676,560

RECEIPTS
Cash Sales																															—
Accounts Receivable	19,171			—			—		—			—			—		1,712,001			—		—		—			—		—		1,731,172
Loans and Advances																															—
Sale of Assets																															—
Other (attach list)	84,048			—			—		—			—			—		2,408			—		—		—			—		—		86,456
Transfers (from dip accts)																															—
Intercompany Transfers																								(137,992		)					(137,992		)
TOTAL RECEIPTS	$	103,219		$	—		$	—	$	—		$	—		$	—	$	1,714,409		$	—	$	—	$	(137,992	)	$	—	$	—	1,679,637

Disbursements
Net Payroll	—			—			—		—			—			—		—			460,287		—		—			—		—		460,287
Taxes	—			—			—		—			—			—		—			37,641		—		—			—		—		37,641
401K																															—
Expense Reports																				28,834											28,834
Insurance Claims																															—
Government Agencies																															—
Bank Fees	—			391			—		140			—			100		—			2,269		—		901			—		—		3,801
Inventory	—			—			—		—			—			—		—			368,506		—		556,936			—		22,782		948,225
Freight	—			—			—		—			—			—		—			71,958		—		278			—		—		72,236
Maintenance	—			—			—		—			—			—		—			4,581		—		—			—		—		4,581
Supplies MRO																															—
Outside Services																															—
Utilities																				20,939											20,939
Information Technology																															—
International Comm																															—
Domestic Comm																															—
Administration	—			—			—		—			—			—		—			83,713		—		225			—		—		83,938
Insurance premiums																															—
Legal	—			—			—		—			—			—		—					—		—			—		—		—
Marketing																															—
Consulting/Professional																				20,310											20,310
Rent																				3,270											3,270
MISC	—			—			—		—			—			—		—			80,205		—		22,508			—		—		102,713
Restructuring, Legal & Advisors																															—
Interest																															—
TOTAL DISBURSEMENTS	$	—		$	391		$	—	$	140		$	—		$	100	$	—		$	1,182,513	$	—	$	580,848		$	—	$	22,782	$	1,786,774

Bank Account Transfers	$	(253,519	)	$	—		$	—	$	—		$	(5,525	)	$	5,525	$	(1,714,409	)	$	1,184,668	$	—	$	628,459		$	—	$	142,705	$	(12,096	)

NET CASH FLOW	$	(150,300	)	$	(391	)	$	—	$	(140	)	$	(5,525	)	$	5,424	$	—		$	2,155	$	—	$	(90,381	)	$	—	$	119,923	$	(119,233	)

Cash - End of Month	$	5,265		$	476		$	—	$	2,426		$	63		$	5,480	$	0		$	1,017,710	$	—	$	303,856		$	—	$	222,052	$	1,557,327

(1) Beginning balances are based on foreign exchange rates as of the end of the month

Colt Holding Company LLC		Case No.: 15-11296
MOR-1: Schedule of Receipts & Disbursements - Summary		Reporting Period: 8/31/15-10/4/15
Sep ‘15 (Aug 31 - Oct 4)

Debtor Name	Case No.	Disbursements
Colt Defense LLC	15-11287	—
Colt Defense Technical Services LLC	15-11288	—
Colt Finance Corp.	15-11289	—
New Colt Holding Corp.	15-11290	—
Colt International Cooperatief U.A.	15-11291	56
Colt’s Manufacturing Company LLC	15-11292	23,117,842
Colt Security LLC	15-11293	83,965
Colt Canada Corporation	15-11294	1,786,774
CDH II Holding Inc.	15-11295	—
Colt Holding Company LLC	15-11296	—
TOTAL		$	24,988,637

Colt Holding Company LLC		Case No.: 15-11296
MOR-1a Bank Reconciliations		Reporting Period: 8/31/15-10/4/15
September ‘15 (August 31-October 4)

Bank Reconciliations

	BANK ACCOUNTS — Colt Defense (excl Canada)
	Wells Fargo Operating - 2949		Wells Fargo Payroll - 3093 (1)		Wells Fargo Depository- 8611 (1)	Wells Fargo Accounts Payable-0355 (1)		Wells Fargo Utility Deposit- 5957	Wells Fargo Operating -3119	Wells Fargo CD Operating -3127	Wells Fargo NCHC Operating-3150	Wells Fargo Operating -4004	Wells Fargo- 3143	Bank of America-9395	Bank of America-4636	Bank of America-7604	Bank of America-5012	Interaudi Bank 3410	JP Morgan-1103	BMO Harris Bank-6366
Account #	1		2		3	4		5	6	7	8	9	10	11	12	13	14	15	16	17
Balance per Books	5,004,352		(64,360	)	—	(2,106,939	)	30,146	110,230	23,500	23,000	12,597	—	—	31,141	—	—	484,835	849,603	285,493

Bank Balance	5,009,539		—		—	—		30,146	110,230	23,500	23,000	12,597	—	—	31,141	—	—	484,835	849,603	285,493
+ Deposits in Transit	—		—		—	—		—	—	—	—	—	—	—	—	—	—	—	—	—
- Outstanding Checks	—		(64,360	)	—	(2,106,939	)	—	—	—	—	—	—	—	—	—	—	—	—	—
Other (2)	(5,187	)	—		—	—		—	—	—	—	—	—	—	—	—	—	—	—	—
Adjusted Bank Balance (Book Balance)	5,004,352		(64,350	)	—	(2,106,939	)	30,146	110,230	23,500	23,000	12.597	—	—	31,141	—	—	484,835	849,603	285,493

(1) ZBA accounts. Once the checks are cashed the funds will be transferred from the WF Operating Account (Acct #1)

(2) Consists of credit card adjustments and other reconciling items

	BANK ACCOUNTS - Canada (in USD)
	BoA #3203 A/R	BoA #3211 - A/P	BoA #3104 - A/R	BoA #3112 -A/P	BoA #3419 A/R	BoA #3401 - A/P	WF #7549 - A/R	WF #7531 - A/P		WF #8241 - A/R	WF #8258 - A/P		WF #7564 - A/R	WF #7556 - A/P
Account #	1	2	3	4	5	6	7	8		9	10		11	12
Balance per Books	5,265	476	—	2,426	63	5,480	0	1,017,710		—	303,856		—	222,052

Bank Balance	5,265	476		2,426	63	5,480		1,182,170			360,254			222,052
+ Deposits in Transit	—	—	—	—	—	—	—	—		—	—		—	—
- Outstanding Checks	—	—	—	—	—	—	—	(164,461	)	—	(56,428	)	—	—
Other	—	—	—	—	—	—	—	—		—	—		—	—
Adjusted Bank Balance (Book Balance)	5,265	476	—	2,426	63	5,480	—	1,017,710		—	303,856		—	222,052

I attest that each of the Debtors’ corporate bank accounts is reconciled to monthly bank statements. The Company’s standard practice is to ensure that each corporate bank account is reconciled to monthly bank statements for each fiscal month.

/s/ Dennis Veilleux		Dennis Veilleux
Authorized Representative		Printed Name of Authorized Representative

Colt Holding Company LLC		Case No.: 15-11296
MOR-1b Schedule of Professional Fees Paid		Reporting Period: 8/31/15-10/4/15
September ‘15 (August 31-October 4)

Current Month Amt Paid

Inception -To-Date Amt Paid

PAYEE

Period Covered

Amount Approved

Payor

Fees

Expenses

Fees

Expenses

Mackinac Partners, LLC

June 15, 2015 - Oct 4, 2015

494,593

Colts Manufacturing LLC

403,172

91,426

403,132

91,426

Kurtzman, Carson Consultants

June 15, 2015 - Oct 4, 2015

106,450

Colts Manufacturing LLC

60,891

45,559

60,891

45,559

Colt Holding Company LLC		Case No.: 15-11296
MOR-2 Statement of Operations		Reporting Period: 8/31/15-10/4/15
MOR - September ‘15
$ in Thousands

Debtor Identification Number	15-11287			15-11292			15-11290			15-11294			15-11291			15-11288			N/A			N/A			15-11295		15-11293			15-11296		N/A			N/A
				U.S. Operations						Canadian Operations						1% Owner Dutch									Part of 4/9/15		Colt Security Guard			Part of 4/9/15		Eliminates Colt			Consolidated
Brief Description of Each Entity	Holding Company			Company			Holding Company			Company			Dutch Coop			Coop			Elim Entity			SEC Reporting Entity			Reorganizaton		Related Activity			Reorganizaton		Security LLC Activity			Debtors
				Colt’s Manufacturing			New Colt Holding			Colt Canada			Colt International			Colt Defense						Colt Defense LLC								Colt Holding					Colt Holding
	Colt Defense LLC			Company LLC			Corp.			Corporation			Cooperatief U.A.			Technical Services LLC			Elimination Entity #1			Total			CDH II Holdco Inc.		Colt Security LLC			Company LLC		Elimination Entity #2			Company LLC Total
Current Month
Net Sales	$	—		$	—		$	—		$	18,007		$	—		$	1,105		$	—		$	19,112		$	—	$	69		$	—	$	(69	)	$	19,112
Cost of sales	—			—			—			15,961			—			808			—			16,769			—		68			—		(68		)	16,769
Gross profit $	—			—			—			2,046			—			297			—			2,343			—		1			—		(1		)	2,343
Gross Margin %	0.0		%	0.0		%	0.0		%	11.4		%	0.0		%	0.0		%	0.0		%	12.3		%			1.4		%			1.4		%	12.3		%

Sales and Marketing	—			—			—			696			—			120			—			816			—		—			—		—			816
Commissions	—			—			—			207			—			10			—			217			—		—			—		—			217
General and Administrative	—			—			7			1,368			—			158			21			1,554			—		—			—		—			1,554
Research and development	—			—			—			249			—			188			—			437			—		—			—		—			437
Total SG&A	—			—			7			2,520			—			476			21			3,024			—		—			—		—			3,024

Operating income	—			—			(7		)	(474		)	—			(179		)	(21		)	(681		)	—		1			—		(1		)	(681		)

Interest expense	—			—			(1,080		)	—			(2,059		)	—			—			(3,139		)	—		—			—		—			(3,139		)
Foreign Currency Gain/(Loss)	—			—			—			(21		)	—			(9		)	—			(30		)	—		—			—		—			(30		)
Intercompany Interest	—			—			(78		)	(46		)	108			17			—			1			—		—			—		—			1
Royalty Expense	—			—			—			—			—			(11		)	—			(11		)	—		—			—		—			(11		)
Other income (expense)	—			—			—			15			330			—			—			345			—		—			—		—			345
Income before taxes - Cont. Ops	—			—			(1,165		)	(526		)	(1,621		)	(182		)	(21		)	(3,515		)	—		1			—		(1		)	(3,515		)

Reorganization Items - Post Petition
Professional Fees	—			—			—			5,061			—			44			—			5,105			—		—			—		—			5,105
US Trustee Quarterly Fees	—			—			—			—			—			—			—			—			—		—			—		—			—
Other reorganization Expenses	—			—			—			—			—			—			—			—			—		—			—		—			—
Total Reorganization Expenses	—			—			—			5,061			—			44			—			5,105			—		—			—		—			5,105

Income tax expense (benefit)	—			—			1			3			—			(39		)	—			(35		)	—		—			—		—			(35		)
Net Income (Loss)	—			—			(1,166		)	(5,590		)	(1,621		)	(187		)	(21		)	(8,585		)	—		1			—		(1		)	(8,585		)

Taxes	—			—			1			3			—			(39		)	—			(35		)	—		—			—		—			(35		)
Depreciation	—			—			—			505			—			35			—			540			—		—			—		—			540
Amortization	—			—			—			200			—			26			—			226			—		—			—		—			226
Interest Expense	—			—			1,080			—			2,059			—			—			3,139			—		—			—		—			3,139
Severance Costs	—			—			—			—			—			—			—			—			—		—			—		—			—
Restructuring Legal Entity (i)	—			—			—			—			—			—			—			—			—		—			—		—			—
Restructuring Bankruptcy (ii)	—			—			—			5,085			—			44			—			5,129			—		—			—		—			5,129
Florida Lease Termination (iii)	—			—			—			—			—			—			—			—			—		—			—		—			—
Sciens Management Fees and Expenses	—			—			—			86			—			—			—			86			—		—			—		—			86
D&O incremental expense (iv)	—			—			—			194			—			—			—			194			—		—			—		—			194
Other income (expense)	—			—			78			52			(438		)	3			—			(305		)	—		—			—		—			(305		)
Adjusted EBITDA	$	—		$	—		$	(7	)	$	535		$	—		$	(118	)	$	(21	)	$	389		$	—	$	1		$	—	$	(1	)	$	389

Colt ERP System Legal Entity Number

10/60

Debtor Identification Number

15-11287

15-11292

15-11290

15-11294

15-11291

15-11288

N/A

15-11295

15-11293

15-11296

N/A

U.S. Operations

Canadian Operations

1% Owner Dutch

Part of 4/9/15

Colt Security Guard

Part of 4/9/15

Eliminates Colt

Consolidated

Brief Description of Each Entity

Holding Company

Company

Holding Company

Company

Dutch Coop

Coop

Elim Entity

SEC Reporting Entity

Reorganizaton

Related Activity

Reorganizaton

Security LLC Activity

Debtors

Colt Holding Company LLC		Case No.: 15-11296
MOR-2 Statement of Operations		Reporting Period: 8/31/15-10/4/15
MOR - September ‘15
$ in Thousands

Debtor Identification Number	15-11287			15-11292			15-11290			15-11294			15-11291			15-11288		N/A			N/A			15-11295		15-11293			15-11296		N/A			N/A

				U.S. Operations						Canadian Operations						1% Owner Dutch								Part of 4/9/15		Colt Security Guard			Part of 4/9/15		Eliminates Colt			Consolidated
Brief Description of Each Entity	Holding Company			Company			Holding Company			Company			Dutch Coop			Coop		Elim Entity			SEC Reporting Entity			Reorganizaton		Related Activity			Reorganizaton		Security LLC Activity			Debtors
				Colt’s Manufacturing			New Colt Holding			Colt Canada			Colt International			Colt Defense					Colt Defense LLC								Colt Holding					Colt Holding
	Colt Defense LLC			Company LLC			Corp.			Corporation			Cooperatief U.A.			Technical Services LLC		Elimination Entity #1			Total			CDH II Holdco Inc.		Colt Security LLC			Company LLC		Elimination Entity #2			Company LLC Total
Post Petition YTD (includes full month of June)
Net Sales	$	—		$	59,851		$	—		$	4,938		$	—		$	—	$	(544	)	$	64,245		$	—	$	410		$	—	$	(410	)	$	64,245
Cost of sales	—			56,933			—			3,548			—			—		(488		)	59,993			—		403			—		(410		)	59,986
Gross profit $	—			2,918			—			1,390			—			—		(56		)	4,252			—		7			—		—			4,259
Gross Margin %																					6.6		%			1.7		%			0.0		%	6.6		%

Sales and Marketing	—			2,076			—			422			—			—		—			2,498			—		—			—		—			2,498
Commissions	—			689			—			75			—			—		—			764			—		—			—		—			764
General and Administrative	27			5,835			1			769			79			—		(2		)	6,709			—		—			—		—			6,709
Research and development	—			826			—			331			—			—		—			1,157			—		—			—		—			1,157
Total SG&A	27			9,426			1			1,597			79			—		(2		)	11,128			—		—			—		—			11,128

Operating income	(27		)	(6,508		)	(1		)	(207		)	(79		)	—		(54		)	(6,876		)	—		7			—		—			(6,869		)

Interest expense	(4,778		)	—			(6,626		)	—			—			—		—			(11,404		)	—		—			—		—			(11,404		)
Foreign Currency Gain/(Loss)	—			224			—			(7		)	—			—		—			217			—		—			—		—			217
Intercompany Interest	(158		)	(133		)	218			75			—			—		(2		)	—			—		—			—		—			—
Royalty Expense	—			—			—			(56		)	—			—		57			1			—		—			—		—			1
Other income (expense)	1			52			1,321			—			—			—		(1,322		)	52			—		—			—		—			52
Income before taxes - Cont. Ops	(4,962		)	(6,365		)	(5,088		)	(195		)	(79		)	—		(1,321		)	(18,010		)	—		7			—		—			(18,003		)

Reorganization Items
Professional Fees	—			13,041			—			173			—			—		—			13,214			—		—			—		—			13,214
US Trustee Quarterly Fees	—			—			—			—			—			—		—			—			—		—			—		—			—
Other reorganization Expenses	—			—			—			—			—			—		—			—			—		—			—		—			—
Total Reorganization Expenses	—			13,041			—			173			—			—		—			13,214			—		—			—		—			13,214

Income tax expense (benefit)	—			14			—			63			—			—		—			77			—		—			—		—			77
Net Income (Loss)	(4,962		)	(19,420		)	(5,088		)	(431		)	(79		)	—		(1,321		)	(31,301		)	—		7			—		—			(31,294		)

Taxes	—			14			—			63			—			—		—			77			—		—			—		—			77
Depreciation	—			2,028			—			147			—			—		—			2,175			—		—			—		—			2,175
Amortization	—			800			—			106			—			—		—			906			—		—			—		—			906
Interest Expense	4,778			—			6,626			—			—			—		—			11,404			—		—			—		—			11,404
Severance Costs	—			—			—			8			—			—		—			8			—		—			—		—			8
Restructuring Legal Entity (i)	—			3,046			—			85			—			—		—			3,131			—		—			—		—			3,131
Restructuring Bankruptcy (ii)	—			11,546			—			173			—			—		—			11,719			—		—			—		—			11,719
Florida Lease Termination (iii)	—			—			—			—			—			—		—			—			—		—			—		—			—
Sciens Management Fees and Expenses	—			336			—			—			—			—		—			336			—		—			—		—			336
D&O incremental expense (iv)	—			777			—			—			—			—		—			777			—		—			—		—			777
Other income (expense)	157			(143		)	(1,539		)	(12		)	—			—		1,267			(270		)	—		—			—		—			(270		)
Adjusted EBITDA	$	(27	)	$	(1,016	)	$	(1	)	$	139		$	(79	)	$	—	$	(54	)	$	(1,038	)	$	—	$	7		$	—	$	—		$	(1,031	)

(i) Restructuring Legal Entity - Costs associated with Colt’s April 9, 2015 legal entity restructuring.

(ii) Restructuring Bankruptcy - Bankruptcy related costs: Pre-petition are included in General and Administrative expenses, Post-petition are included under Reorganzation items.

(iii) Florida Lease Termination - Costs associated with the termination of Colt’s Florida Facility lease of which approximately $50K were lease termination costs.

(iv) D&O Incremental Expense - Incremental D&O insurance costs associated with higher D&P premiums given Colt’s bankruptcy filing.

Colt Holding Company LLC		Case No.: 15-11296
MOR-3 Balance Sheet		Reporting Period: 8/31/15-10/4/15
MOR - September ‘15
$ in Thousands

Debtor Identification Number	15-11287		15-11292			15-11290			15-11294			15-11291		15-11288		N/A			N/A			15-11295		15-11293		15-11296		N/A			N/A

			U.S. Operations						Canadian Operations					1% Owner Dutch								Part of 4/9/15		Colt Security Guard		Part of 4/9/15		Eliminates Colt			Consolidated
Brief Description of Each Entity	Holding Company		Company			Holding Company			Company			Dutch Coop		Coop		Elim Entity			SEC Reporting Entity			Reorganizaton		Related Activity		Reorganizaton		Security LLC Activity			Debtors
			Colt’s											Colt Defense
			Manufacturing			New Colt Holding			Colt Canada			Colt International		Technical Services					Colt Defense LLC							Colt Holding					Colt Holding
	Colt Defense LLC		Company LLC			Corp.			Corporation			Cooperatief U.A.		LLC		Elimination Entity #1			Total			CDH II Holdco Inc.		Colt Security LLC		Company LLC		Elimination Entity #2			Company LLC Total

ASSETS
Current Assets:
Cash and Cash Equivalents	$	24	$	2,933		$	23		$	1,558		$	13	$	—	$	—		4,551			$	—	$	115	$	—	$	—		$	4,666
Restricted Cash	—		1,048			—			—			—		—		—			1,048			—		—		—		—			1,048
Accounts receivable	—		15,018			—			2,578			—		—		—			17,596			—		16		—		(16		)	17,596
Inventories, net	—		47,798			—			7,219			—		—		(94		)	54,923			—		—		—		—			54,923
Other current assets	71		4,959			—			789			9		—		—			5,828			—		—		—		—			5,828
Preferred Dividend Receivable	—		—			1,064			—			—		—		(1,064		)	—			—		—		—		—			—
Current Deferred Tax Asset	—		—			—			146			—		—		—			146			—		—		—		—			146
Total current assets	95		71,756			1,087			12,290			22		—		(1,158		)	84,092			—		131		—		(16		)	84,207
																															—
Property & Equipment - Cost																															0
PP&E - Cost	—		55,236			—			7,042			—		—		—			62,278			—		—		—		—			62,278
PP&E - A/D	—		(38,132		)	—			(3,565		)	—		—		—			(41,697		)	—		—		—		—			(41,697		)
Net property and equipment	—		17,104			—			3,477			—		—		—			20,581			—		—		—		—			20,581
																															—
*Other Assets*																															0
Intercompany (Pay) Rec																															—
Colt Defense	—		(19,525		)	11,214			—			—		—		8,311			—			—		—		—		—			—
Colt Canada	—		1,217			—			—			—		—		(1,217		)	—			—		—		—		—			—
Colt International	—		138			—			—			—		—		(138		)	—			—		—		—		—			—
CMC	2,949		214			(1,308		)	4,553			—		—		(6,408		)	—			—		—		—		—			—
NCHC	—		—			—			—			—		—		—			—			—		—		—		—			—
Tech Services	—		(79		)	—			—			—		79		—			—			—		—		—		—			—
Investment in CMC/NCHC	268,417		—			91,105			—			—		—		(359,522		)	—			—		—		—		—			—
Investment in Canada	—		—			—			—			49,000		—		(49,000		)	—			—		—		—		—			—
Goodwill	—		247,679			—			8,111			—		—		(247,679		)	8,111			—		—		—		—			8,111
Intangible assets, finite-lived	—		4,983			—			2,473			—		—		—			7,456			—		—		—		—			7,456
Trademarks	—		38,350			—			—			—		—		—			38,350			—		—		—		—			38,350
Deferred financing costs	508		—			1,226			—			—		—		—			1,734			—		—		—		—			1,734
Other assets	—		3,016			—			—			—		—		—			3,016			—		—		—		—			3,016
Archive inventory	—		336			—			—			—		—		—			336			—		—		—		—			336
Deferred leasing costs	—		—			—			—			—		—		—			—			—		—		—		—			—
Prepaid license fees	—		—			—			—			—		—		—			—			—		—		—		—			—
Long-term deferred tax	—		—			—			—			—		—		—			—			—		—		—		—			—
Long-term restricted cash	—		572			—			—			—		—		—			572			—		—		—		—			572
Total Other Assets	271,874		276,901			102,237			15,137			49,000		79		(655,653		)	59,575			0		0		0		0			59,575.00
																															0
TOTAL ASSETS	$	271,969	$	365,761		$	103,324		$	30,904		$	49,022	$	79	$	(656,811	)	$	164,248		$	—	$	131	$	—	$	(16	)	$	164,363

Colt Holding Company LLC		Case No.: 15-11296
MOR-3 Balance Sheet		Reporting Period: 8/31/15-10/4/15
MOR - September ‘15
$ in Thousands

Debtor Identification Number	15-11287			15-11292			15-11290			15-11294			15-11291			15-11288		N/A			N/A			15-11295		15-11293		15-11296		N/A			N/A

				U.S. Operations						Canadian Operations						1% Owner Dutch								Part of 4/9/15		Colt Security Guard		Part of 4/9/15		Eliminates Colt			Consolidated
Brief Description of Each Entity	Holding Company			Company			Holding Company			Company			Dutch Coop			Coop		Elim Entity			SEC Reporting Entity			Reorganizaton		Related Activity		Reorganizaton		Security LLC Activity			Debtors
				Colt’s												Colt Defense
				Manufacturing			New Colt Holding			Colt Canada			Colt International			Technical Services					Colt Defense LLC							Colt Holding					Colt Holding
	Colt Defense LLC			Company LLC			Corp.			Corporation			Cooperatief U.A.			LLC		Elimination Entity #1			Total			CDH II Holdco Inc.		Colt Security LLC		Company LLC		Elimination Entity #2			Company LLC Total
LIABILITIES and EQUITY
Current liabilities:
Capital Lease Obligation Current	$	—		$	—		$	—		$	—		$	—		$	—	$	—		$	—		$	—	$	—	$	—	$	—		$	—
Intercompany Payable:
Colt Defense	—			1,314			—			—			143			—		(1,457		)	—			—		—		—		—			—
Colt Canada	—			4,610			—			—			—			—		(4,610		)	—			—		—		—		—			—
CMC	(19,525		)	—			—			1,374			—			—		18,151			—			—		—		—		—			—
NCHC	11,214			66,376			—			—			—			—		(77,590		)	—			—		—		—		—			—
Revolver Advance	—			—			—			—			—			—		—			—			—		—		—		—			—
Current Debt	38,511			—			83,788			—			—			—		—			122,299			—		—		—		—			122,299
Accounts payable	—			17,862			—			1,882			—			—		—			19,744			—		—		—		—			19,744
Accrued Interest	123			—			132			12			—			—		—			267			—		—		—		—			267
Accrued Commissions	—			1,577			—			89			—			—		—			1,666			—		—		—		—			1,666
Accrued Compensation & Benefits	—			3,581			—			602			—			—		—			4,183			—		—		—		—			4,183
Accrued Taxes	—			1,839			—			137			—			—		—			1,976			—		—		—		—			1,976
Accrued warranty/M240 contract liab	—			1,315			—			46			—			—		—			1,361			—		—		—		—			1,361
Accrued expenses	(1		)	12,724			2			882			—			—		5			13,612			—		54		—		(16		)	13,650
Distributions payable to members	—			—			—			—			—			—		—			—			—		—		—		—			—
Current Portion Deferred Inc	—			3,842			—			—			—			—		—			3,842			—		—		—		—			3,842
Current Portion of Empl Benefit Costs	—			1,482			—			—			—			—		—			1,482			—		—		—		—			1,482
Customer Advances	—			2,856			—			6,247			—			—		—			9,103			—		—		—		—			9,103
Preferred Dividend Payable	—			1,064			—			—			—			—		(1,064		)	—			—		—		—		—			—
Total current liabilities	30,322			120,442			83,922			11,271			143			—		(66,565		)	179,535			—		54		—		(16		)	179,573
Long-Term Liabilities
Senior Notes	—			—			—			—			—			—		—			—			—		—		—		—			—
Term Loan - Long-term Portion	—			—			—			—			—			—		—			—			—		—		—		—			—
L/T distributions payable to members	—			—			—			—			—			—		—			—			—		—		—		—			—
Accumulated Post-Retirement Health	—			25,257			—			—			—			—		—			25,257			—		—		—		—			25,257
Pension Liabilities, less current portion	—			12,317			—			—			—			—		—			12,317			—		—		—		—			12,317
Other Long-term Liabilities	—			4,788			1,110			—			—			—		—			5,898			—		—		—		—			5,898
Deferred Taxes Payable	—			—			12,381			1,149			1,297			—		—			14,827			—		—		—		—			14,827
Deferred Income	—			556			—			—			—			—		—			556			—		—		—		—			556
Total Long-Term Liabilities	—			42,918			13,491			1,149			1,297			—		—			58,855			—		—		—		—			58,855
Liabilities Subject to Compromise
Senior Note Accrued Interest *	12,623			—			—			—			—			—		—			12,623			—		—		—		—			12,623
Senior Notes, net of discount	245,497			—			—			—			—			—		—			245,497			—		—		—		—			245,497
Total Pre-Petition Liabilities	258,120			—			—			—			—			—		—			258,120			—		—		—		—			258,120
Total Liabilities	288,442			163,360			97,413			12,420			1,440			—		(66,565		)	496,510			—		54		—		(16		)	496,548
SHAREHOLDERS’ EQUITY
Common Units Repurchased	(64,538		)	—			—			—			—			—		—			(64,538		)	—		—		—		—			(64,538		)
Tax Distributions to LLC Members	(69,759		)	—			—			—			—			—		—			(69,759		)	—		—		—		—			(69,759		)
Investment by Parent	—			—			13,924			—			49,000			—		(62,924		)	—			—		—		—		—			—
Members’ Equity	127,430			190,090			4,393			33,252			(1,767		)	—		(460,353		)	(106,955		)	—		71		—		—			(106,884		)
Preferred Stock	—			66,048			—			—			—			—		(66,048		)	—			—		—		—		—			—
Accumulated OCI - Pension & PRHP	—			(21,564		)	—			—			—			—		—			(21,564		)	—		—		—		—			(21,564		)
Accumulated OCI - Other	—			—			—			(5,737		)	175			—		—			(5,562		)	—		—		—		—			(5,562		)
Currency Translation	—			—			—			—			(184		)	—		2,039			1,855			—		—		—		—			1,855
Net Income	(17,530		)	(37,605		)	(6,974		)	(567		)	(103		)	—		(2,960		)	(65,739		)	—		6		—		—			(65,733		)
Dividends Paid	—			—			—			(8,464		)	(8,003		)	—		—			(16,467		)	—		—		—		—			(16,467		)
Dividends Received	7,924			5,432			(5,432		)	—			8,464			79		—			16,467			—		—		—		—			16,467
Total Member’s deficit	(16,473		)	202,401			5,911			18,484			47,582			79		(590,246		)	(332,262		)	—		77		—		—			(332,185		)
TOTAL LIABILITIES & MEMBER’S DEFICIT	$	271,969		$	365,761		$	103,324		$	30,904		$	49,022		$	79	$	(656,811	)	$	164,248		$	—	$	131	$	—	$	(16	)	$	164,363

* Senior Note Accrued Interest does not include post petition accrued interest.

Colt Holding Company LLC	Case No.: 15-11296
MOR-4 Status of Postpetition Taxes	Reporting Period: 8/31/15-10/4/15
MOR - September’15
Consolidated

STATUS OF POSTPETITION TAXES

			Amount
	Beginning Tax		withheld or					Ending Tax
	Liability		acccrued	Amount paid		Date paid	Check No. or EFT	Liability
Federal
Withholding	131,823		575,348	557,810		Various	Various	149,361
FICA- Employee	64,094		333,751	332,432		Various	Various	65,413
FlCA-Employer	79,913		308,745	306,677		Various	Various	81,981
Unemployment	2,934		8,475	9,829		Various	Various	1,580
Income	19,523		93,116	93,689		Various	Various	18,950
Other	1,185,086		562,317	18,919		Various	Various	1,728,483
Total Federal Taxes	1,483,373		1,881,752	1,319,357				2,045,768

State and Local
Withholding	38,601		190,790	188,161		Various	Various	41,229
Sales	(64,416	)	10,377	(67,431	)	Various	Various	13,392
Excise	1,514		605	—		Various	Various	2,119
Unemployment	2,599		10,686	11,106		Various	Various	2,178
Real Property	(2,752	)	5,947	18,722		Various	Various	(15,527	)
Personal Property	61,842		35,483	16,577		Various	Various	80,748
Other (EHT)	1,785		8,360	8,479		Various	Various	1,667
Total State and Local	39,172		262,248	175,614				125,806
Total Taxes	1,522,544		2,144,000	1,494,971				2,171,574

I attest that to the best of my knowledge, the Debtors have filed all necessary federal, state, and local tax returns and made all required post petition tax payments in connection therewith on a timely basis or have promptly remediated any late filings or payments that may have occurred due to unintentional oversights

/s/ Dennis Veilleux		Dennis Veilleux
Authorized Representative		Printed Name of Authorized Representative

SUMMARY OF UNPAID POSTPETITION DEBTS

	Number of Days Past Due
	Current	0-30	31-60	61-90		Over 90	Total

Administration	92,373	69,293	38,610	29,167		1,362	230,804
Employee	2,531	—	—	91		—	2,622
Government Agencies	—	—	—	—		—	—
Inventory	5,319,442	3,390,967	3,758	(391	)	—	8,713,777
Insurance Payable	1,019	152,407	—	—		—	153,425
Information Tech -Computers	14,731	16,091	—	—		—	30,822
Freight	127,345	5,157	—	—		—	132,502
Lease Payable	1,877	9,032	—	—		—	10,909
Marketing / Advertising	59,717	36,407	32,824	7,155		—	136,102
Maintenance	104,737	55,625	871	975		—	162,208
Outside Service	69,013	86,110	6,909	—		—	162,032
MRO / Supplies	731,098	135,926	1,688	—		—	868,712
Commission	—	89,881	102,665	55,439		9,088	257,073
Legal	7,881	69,329	59,731	—		—	136,940
Outside Consultants	76,868	142,969	23,508	232,500		—	475,846
Restructuring	—	201,008	735,086	—		—	936,094
Utilities	16,480	—	—	—		—	16,480
Other	—	920	—	—		—	920
Canada Accounts Payable	515,908	368,933	237,089	30,446		807	1,153,182
Canada Commissions	2,452	50,378	11,840	8,128		—	72,798
Total Postpetition Debts	7,143,473	4,880,431	1,254,579	363,510		11,256	13,653,248

Colt Holding Company LLC	Case No.: 15-11296
MOR-5 A/R Reconciliation & Aging	Reporting Period: 8/31/15-10/4/15
MOR - September ‘15
Consolidated

Accounts Receivable Reconciliation	Amount
Total Accounts Receivable at the beginning of the reporting period	$	14,344,060
+ Amounts billed during the period	16,779,710
- Amounts collected during the period	(13,006,952		)
Total Accounts Receivable at the end of the reporting period	$	18,116,817

Accounts Receivable Aging	Amount
0 - 30 days old	$	11,817,970
31 - 60 days old	4,711,094
61 - 90 days old	752,679
91+ days old	835,074
Total Accounts Receivable	18,116,817
Amount considered uncollectible (Bad Debt)	(249,585		)
Accounts Receivable (Net)	$	17,867,232

Note: Aging represents trade accounts receivable. Will not reconcile to total AR on balance sheet due to other items including advances, reserve for cash discounts and other receivables

	Yes	No
1. Have any assets been sold or transferred outside the normal course of business this reporting period? If yes, provide an explanation below.		X

2. Have any funds been disbursed from any account other than a debtor in possession account this reporting period? If yes, provide an explanation below.		X

3. Have all postpetition tax returns been timely filed? If no, provide an explanation below.	X

4. Are workers compensation, general liability and other necessary insurance coverages in effect? If no, provide an explanation below.	X

5. Has any bank account been opened during the reporting period? If yes, provide documentation identifying the opened account(s). If an investment account has been opened provide the required documentation pursuant to the Delaware Local Rule 4001-3. (see note below and MOR-1(US) account 5957)	X

Note: The Debtor opened a utility deposit account in September with Wells Fargo (#5957). Additional information is available from the Debtors’ counsel upon request.”

Colt Defense LLC - FORM 8-K - EX-99.1 - November 2, 2015

Attached files

Colt Defense LLC Reports