Point Blank, DIP lenders ink default forbearance; sale deadline Nov. 4

By Caroline Salls

Pittsburgh, Sept. 19 - Point Blank Solutions, Inc. received court approval of a replacement debtor-in-possession facility forbearance agreement, according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.

The company said it did not repay the $25 million in replacement DIP loans when they matured on June 15, 2011, triggering an event of default.

Point Blank said additional events of default have also occurred under the facility.

The lenders have agreed not to exercise their default-related rights until Nov. 11, according to the filing. In addition, the commitment termination date was extended to Nov. 11.

Under the forbearance agreement, Point Blank must close on a sale of its assets by Nov. 4.

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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