In a deal that many would consider to be a lifeline for Colt Defense LLC. after filing for Chapter 11 Bankruptcy in June this year, it was able to win together with FN America a US$212 million contract to supply M4s to the U.S. Army. This contract, good up to September 2020, is to supply M4 and M4A1 rifles as part of program to replace ageing rifles. In 2013, FN America was able to win a contract worth US$77 million over Colt and others, to supply the U.S. Army M4A1s.

However, it is still unclear how much will be Colt's share in the US$212 contract as it shares it with FN America. Details are still a bit sparse since Colt just issued a short notice about the bid:

"Colt Defense LLC, West Hartford, Connecticut (15QKN-15-D-0102); and FN America LLC, Columbia, South Carolina (W15QKN-15-D-0072), were awarded a $212,000,000 firm-fixed-price multi-year contract for M4 and M4A1 carbines for the Army and others, with an estimated completion date of Sept. 24, 2020.  Bids were solicited via the Internet with six received.  Funding and work location will be determined with each order. Army Contracting Command, Picatinny Arsenal, New Jersey, is the contracting activity."

This means that the issue of getting out its bankruptcy status is still very much in question given that its share may not be enough to wipe out its debt to creditors. For now filing for Chapter 11 protects it from creditors whilst it sorts the mess out as it is burdened with a US$250 million debt.

According to Guns.com, The contract also means that the M4 rifle won't be replaced anytime soon by the U.S. Army even as it contemplated on having a new design to replace the rifle. What the U.S. Army us doing right now is to improve the rifle through the Product Improvement Program and M4A1-plus. The Product Improvement Program is enhancing the existing M4 and M4A1 with improved fire control groups whilst the M4A1-plus is upgrading the rifle using the enhancements done in the civilian sector that would make still effective in the years to come.