Point Blank shareholder eyes stay of stock deregistration order

By Caroline Salls

Pittsburgh, March 23 - Point Blank Solutions Inc. shareholder David H. Brooks has asked the U.S. Bankruptcy Court for the District of Delaware to stay its order granting the company's request to de-register as a public company pending appeal, according to a Wednesday court filing.

As an alternative to granting a stay of the order, Brooks said the court could condition the deregistration on Point Blank obtaining "OTC Pink Current Information" status.

Brooks said the current information status does not require an audit but would allow the stock to continue to trade after deregistration under the rules of OTC Markets Group, Inc.

According to the motion, Point Blank has not demonstrated that it met the criteria for deregistration of its stock. Instead, Brooks said the company wants to avoid roughly $1 million in legal and accounting fees to bring it into compliance with SEC regulations.

"Even if this estimate is correct, it pales in comparison to the shareholder value which may be wiped out on deregistration," Brooks said in his motion.

"Deregistration may well result in cessation of all trading in PBSO shares; and it will certainly result in a loss of shareholder value through decreased market price."

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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