Point Blank Solutions, Inc., based in Pampano Beach, FL, announced today that they and its subsidiaries have filed a voluntary petition for Chapter 11 reorganization. Point Blank, together with its subsidiaries, engages in the manufacture and provision of bullet, fragmentation, and stab resistant apparel and related ballistic accessories for military, law enforcement, security, and corrections personnel, as well as government agencies in the United States. Point Blank also announced that, pending bankruptcy court approval, it has reached an agreement for up to $20 million of Debtor-in-Possession (“DIP”) financing.
Point Blank cited financial issues that were brought about by previous management as being insurmountable. Although they have tried a variety of tactics and business strategies, including seeking alternate sources of funding, the bankruptcy protection filing is a last resort that is in the best interest of all parties involved. Point Blank fully intends to continue all business operations throughout the administration of the bankruptcy cases and to honor all of its existing customer commitments without interruption, post-petition. A Chapter 11 bankruptcy filing is designed to protect companies from previous debt, while not affecting current business or business from here on forward. The filings are being submitted to the Delaware court systems.
CEO and Chairman of the Board of Point Blank Solutions, James Henderson, stated in the press release, “Despite all of the legacy issues we have faced over the past several years, we continue to produce what I believe, are the industry’s best products for the most important customers in the world. We have won several key contracts, paid down a substantial amount of our debt and realigned our business to return to profitability. Without a financing facility and with mounting legacy expenses, however, we had to take this step to reorganize. I am confident that we will continue to operate in an efficient manner and meet our customer requirements during the reorganization process and that we will emerge a stronger organization, due to the quality of our products and our people.”