From "The Outdoor Wire"

Dakota Arms, Inc., the Sturgis, South Dakota maker of fine custom firearms, has come out of bankruptcy through what is, essentially, the sale of itself to itself. Dakota had been operating under bankruptcy protections since a clash with a creditor forced the company into bankruptcy protection last July.

Under Section 363 of the U.S. Bankruptcy Code, a company in Chapter 11 protection can sell certain assets in order to continue to operate. Broadening of the case law concerning Section 363 has broadened the terms of an asset sale to the point the company can literally sell all its assets.

In this instance, bids were invited, and Dakota Equity, LLC, a wholly owned subsidiary of Technology Funding (the previous owner) submitted what is called the "stalking horse" bid - the bid others must best.

When bidding closed, there were no other bidders, allowing bankruptcy Judge Robert J. Kressel to approve the sale. The only objection to the action, incidentally, was from the creditor whose aggressive actions toward Dakota had precipitated the original Bankruptcy petition. All the other parties, from secured creditors to the Official Committee of Unsecured Creditors, expressed for Judge Kressel's Sale Approval Order.

"Today, the court acknowledged that the sale of assets is in the best interests of the estate and all the stakeholders, including the Dakota employees. The sale provides the best opportunity for Dakota Arms to put the bankruptcy behind us and move forward," said Dakota president Charlie Kokesh. "We can once again focus all of our attention on manufacturing the world's most accurate and reliable rifles for hunters and sportsmen who appreciate the very best."

Dakota Arms will continue to operate under the same name, Dakota Arms, Inc. Kokesh acknowledged the company's debt and gratitude to its employees, customers and trade vendors. "Without the overwhelming support from all three constituencies, the bankruptcy might have proven fatal to Dakota. Instead, as a result of their efforts, we are coming out of bankruptcy stronger than ever and can continue to carry the great legacy left by our founders, Don and Norma Allen."

"The Dakota sales team is taking orders, and our highly skilled craftsmen and women who build America's finest custom rifles are hard at work. There has never been a better time to call and place an order," sales manager Richard Spruill said. "Dakota Arms is ready to get back to business."

Good news!

Have always admired their products - from afar, unfortunately.

I don't trust Kokesh. He's the guy that took what Don Allen had built and ran it into the ground and started this whole mess to begin with. What in the world is a High Tech Fund doing owning a high end semi-custom gun manufacturing facility?

I just hope Kokesh leaves the people that are actually doing the work alone this time, doesn't start acquiring other companies again, and keeps the company as Don Allen founded it.

We'll see.

I'd love to have a very good M76 in 375 H&H, but not the way they've been producing them since Kokesh has been at the helm. He's going to have to change the way they've been doing business, back to what Dakota once was. Unfortunately, that was back to when I could not afford one...

Since it was a bank that brought down the Dakota house and forced them into bankruptcy, I don't think this is quite over. Since no one but Dakota bid on Dakota, I'm guessing the Bank may be planning a different attack on either Dakota or the Technology Fund.

I'm guessing the Bank wasn't the only creditor or equity interest holder that was left holding the bag, either. This story is a long way from being over, I suspect. It doesn't sound like anyone was satisfied. Except Kokesh...

I thought I remembered reading somewhere that Dakota bought out Nesika. Is this correct? No mention of it I could see on either Nesiksa's or Dakota's websites.

Dakota had purchased Nesika. I'm not sure where Nesika stands now after the auction, though.

Dakota had also purchased Miller Arms, a upscale luggage company, and a travel company.

Just by strange conquidence a customer was in the shop today who's son is employed by Dakota Arms. Today was to be his son's last day. He was employed as a CNC set up machinist who is "G" code literate. According to our customer the machines were rented or leased... they are gone. Inventory on hand went to Texas. The city of Sturgis owns the building. Out of 60 employees his son was one of the last 8 who still had a job.

I don't know.... just what I was told by a long time customer.

The customer who relayed the info to me previously was in the shop again today. I asked about his son and what he was doing for employment. According to the schetchy info he had the business was sold to someone else. His son is still working at Dakota Arms along with a few others. He didn't know how many employees or who the new owner was. Said they are still building guns and taking care of previous commentments. When I find out anything else I'll pass it along.