Not a fixed income analyst nor saw a full financial record of H&K. Opinion is just based on this report.

I would be surprised if any major defense company will buy H&k. My guess is if H&K doesn't have any cash infusion by investment company or have more creditors, they will have a major garage sale at this rate.
Even if I had $5b, I don't think I have a skill set , ego , or operation skills to turn this company around. Truly sad that H&K didn't follow mkt strategy like other companies did.

The decline in sales has squeezed company finances, sending its bonds tumbling and pushing it into borrowing at 10 percent to make interest payments of 9.5 percent on other debt.
The German government restricted weapons exports to areas at risk of conflict in 2013, including Saudi Arabia. That cost H&K as much as 50 million euros in the first nine months of 2014, with total revenue shrinking to 102 million euros down from 153 million euros in the same period of 2013, according to its private financial accounts. Last month, the Defense Ministry said it had completed a damning report on its G36 assault rifles.
H&K’s 295 million euros of bonds due in May 2018 fell to a three-year low of 63.6 cents, to yield 27.9 percent, according to data compiled by Bloomberg.The notes rebounded to 74 cents, to yield 21.6 percent, on Thursday after German media reported that the army may alter its inventory of 180,000 H&K rifles rather than junk them. That gives the company the chance to win the contract to modify the weapons. The incident, however, underscored the volatility of a company with about 30 million euros of both earnings and annual interest payments.
The company took out a credit line in November with Bybrook Capital, a London-based hedge fund founded in 2013 by Robert J. Dafforn, to meet its 14 million-euro interest payment. Bybrook charges 10 percent for the 30 million-euro facility when it’s drawn and 4 percent when it’s not. Heeschen said the next bond coupon payment on May 15 will be a much smoother affair as its U.S. expansion begins to pay off.