Former Point Blank gets approval of amended plan disclosure statement

By Mark Reccek

Bethlehem, Pa., Aug. 28 – SS Body Armor I, Inc., formerly Point Blank Solutions, Inc., received approval of the disclosure statement for its amended plan of liquidation, according to an order issued Thursday with the U.S. Bankruptcy Court for the District of Delaware.

The plan confirmation hearing is scheduled for Nov. 9.

As previously reported, the company obtained approval of a lawsuit settlement that will provide a $20 million loan to fund the Chapter 11 plan. The settlement resolves a securities class action lawsuit, as well as a consolidated derivative lawsuit.

Plan terms

The agreed treatment of creditors under the plan include the following:

• Holders of administrative, priority tax and other priority claims will be paid in full in cash;

• Holders of secured claims will be paid in full in cash or receive a return of the collateral securing the claims;

• Holders of general unsecured claims will receive a proportionate share of funds available from recovery trust interests;

• Holders of subordinated unsecured claims will receive a proportionate share of funds available from recovery trust interests after general unsecured claims have been paid in full;

• Holders of class action claims will receive a proportionate share of cash equivalent to 3.18 million shares of common stock;

• Holders of old common stock will have their stock canceled and receive a recovery trust interest, which will entitle each holder to its proportionate share of remaining funds available in the recovery trust; and

• Holders of subordinated common stock, other old equity interests and all other subordinated claims will receive no distribution.

The plan is supported by the company’s official committee of creditors and will implement the continued liquidation and distribution of its remaining assets, mainly causes of action, along with a wind-down of the estate.

SS Body Armor I, Inc., formerly Point Blank, is a Pompano Beach, Fla., producer of body armor systems for law enforcement and the military. The company filed for bankruptcy on April 14, 2010. Its Chapter 11 case number is 10-11255.

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