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Former Point Blank unsecured creditor eyes denial of plan disclosure
By Kali Hays
New York, July 16 – The proposed liquidation plan of SS Body Armor I, Inc., formerly Point Blank Solutions, Inc., elicited an objection from the company’s unsecured creditor, LifeStone Materials, LLC, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.
LifeStone, which holds an unsecured claim against the company totaling $8.31 million, says that the plan’s disclosure statement does not contain adequate information nor “any analysis regarding the proposed substantive consolidation of the debtors’ estates and its impact on creditors.”
As previously reported, SS Body Armor’s plan calls for a debtor consolidation, and the company intends to operate post-bankruptcy under Point Blank Enterprises, Inc., which purchased substantially all company assets for $36.6 million in late-2011.
The creditor claims that the disclosure statement “provides no explanation of whether creditors of each of the debtors’ estates would be entitled to greater distribution if the estates were not substantively consolidated.”
“In order to make an informed vote on the plan, LifeStone and other creditors should know the approximate aggregate value of assets in each of the debtors’ estates, the approximate number and amount of claims filed against each of the debtors and the nature of those claims and anticipated distributions for each debtor if the debtors are not substantively consolidated,” the objection stated.
Lifestone asked that the court reject the disclosure statement and that changes in line with its objection be ordered.
A hearing to consider approval of the disclosure statement is set for July 23.
SS Body Armor 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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