If Colt goes through Chapter 11 the current board and owners will be out, so what either of them think about moving from CT to somewhere else will be irrelevant
Gunslinger-Mike - I'm not a bankruptcy lawyer though I've worked in the field as an accountant. Basically, Colt has been mismanaged since 1836, and yes, it's gone bankrupt before, starting with their operations in Patterson, NJ. While their operations presumably are profitable, they have a large debt payment that they've failed to make, and their credit rating is as bad as it gets - D (for Default). There's (keeping this super simple) two kinds of bankruptcy - the worse one is Chapter 7. Basically, the company would be shut down, the machines sold off, at best he name sold to someone else. The other is Chapter 11 - Reorganization. Generally, this is done with companies that might (MIGHT) be able to get back on it's feet, but ultimately the idea is that each of the creditors in theory would recover more than if there was a fire sale of old machines and half completed 1911's. Usually, the old debt holders get some partial repayment and/or ownership of the company, and the old equity holders lose most/all of their equity. Also, the company can get out of certain contacts - one major example being a lease. Anyway, the current owners - an investment company and the State of CT pension fund - are going to take a huge hit.
Hey, there's still room in FL - if they don't get the boot: http://www.orlandosentinel.com/news/breaking-news/os-osceola-colt-ultimatum-20150114-story.html