Reuters reports that unsecured creditors of Point Blank Solutions Inc. have asked the Delaware bankruptcy court to appoint an examiner or Chapter 11 trustee to displace the company’s board.
According to the Reuters news release, “the official committee of unsecured creditors claimed that the company had placed the interests of insiders above maximizing value of the business. The filing claims that “restructuring alternatives had benefited Steel Partners, which provided Point Blank with a $20 million debtor-in-possession loan.” According to the filing, Steel Partners controls the Point Blank Solutions Board of Directors and, as such, unsercured creditors believe that their interests are not adequately addressed.
Point Blank Armor, a subsidiary of Point Blank Solutions, reportedly supplies more than 80 percent of the U.S. military’s soft body armor vest requirements, according to court documents. It has been involved in a number of litigations and SEC investigations.Share