On the other hand, Colt's was making almost nothing anybody wanted. They also had awful reseller business demands and allowed their previous executive staff loot the treasury.
I wouldn't doubt it. The story I read in the WSJ seemed to be very upbeat on their continuing production after the matter is sorted out. I agree with some of the others that they became far too dependent on the government money, which is too bad, because they make one heck of a nice civilian AR in the LE6920. On which, incidentally, there doesn't appear to be much of a run, at least yet. That implies to me that the market isn't panicking.
They can make and have made terrific products, and whoever was in charge of the business plan the last decade or so probably needs to find other work. IMHO, of course.