Point Blank looks to amend sale agreement; price cut to $20 million

By Caroline Salls

Pittsburgh, Sept. 28 - Point Blank Solutions, Inc. requested court approval of an amended stalking horse agreement for the proposed sale of its bullet, fragmentation and stab resistant apparel manufacturing business, which reduces the purchase price to be paid by stalking horse bidder Barrier Acquisition, LLC to $20 million from $30 million, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

Point Blank said Barrier asked to reduce the proposed purchase price as a result of its due diligence.

The amended stalking horse agreement also includes a reduction of the benchmark for the working capital adjustment to $25 million from $30 million, a decrease in the amount of the break-up fee to $500,000 from $750,000 and in the amount of the expense reimbursement to $250,000 from $350,000 and the elimination of the requirement that the sale order be a final order as a condition to closing of the proposed sale.

In addition, a provision prohibiting credit bids has been waived, subject to a requirement that any credit bid also include a cash component of at least $750,000.

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

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