In a press statement issued Sunday night, representatives for Colt Defense say the company is initiating a Section 363 sale with Sciens Capital Management as the "stalking horse bidder," meaning Sciens has been chosen to make the first bid for the gun maker.

Colt representatives tell Business Insider the company has received $20 million in financing to help it continue operations during the process, which could last 60 to 90 days.

Under a proposed agreement, Sciens Capital Management would acquire Colt's assets "to ensure a smooth and swift transition of the business with all of its iconic brands, products, and operations" bolstered by a lower debt burden.

The West Hartford, Connecticut-based company emphasized its commitment to the community in which it has operated for generations, citing "a long term extension" on a lease for its facilities there.