One of the most familiar names in the gun industry, as well as in the airsoft industry, Colt Defense LLC, has gotten a deal to make it avoid going into default. Earlier, the company said it might not be able to make at bond interest payment of US$10.9 million which was due last Monday, November 17 according to Bloomberg Businessweek.

In 2013, Colt Defense acquired Colt Manufacturing Co. for US$60.5 million after a decade of doing business separately. This merger also carried a US$250 million worth of debt.

The company just had a deal with Morgan Stanley, in which the company gets a loan of US$70 million which will mature in 2018. The 178-year old firearms maker which has been hit with lower sales of sporting rifles and handguns in the past year coupled with less orders from the U.S. government, will be able to make the US$10.9 million bond payment with the fresh cash injection and also help pay off an existing US$50 million term loan.

As some might say, Colt just "dodged a bullet" on this one.

Initially known as the Patent Arms Manufacturing Company in New Jersey with its 1836 patent for the revolving cylinder, it became as the Colt Patent Firearms Manufacturing Company in 1855. The company is well known over the years for the iconic firearms, such as the Single Action Army, the Colt Python, the Colt 1911 and also for the production of the AR-15, M16, Colt Commando, and the M4.