Protected Vehicles asks for court OK of global resolution clearing path to plan confirmation

By Jennifer Lanning Drey

Portland, Ore., Dec. 23 - Protected Vehicles, Inc. requested court approval of a global resolution with Rafael-Advanced Defense Systems Ltd. that would clear the way to confirmation of the company's plan of liquidation, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of South Carolina.

Under the settlement, Protected Vehicles and Rafael would release all claims against each other, allowing Protected Vehicles' interests in their joint intellectual property to be transferred to PVI Acquisition LLC, Protected Vehicles' asset purchaser.

Specifically, Rafael would release a $16.6 million claim against Protected Vehicles.

According to the motion, the court conditionally approved Protected Vehicles' plan of liquidation pending approval of the global resolution.

If the global resolution is not approved, the confirmation hearing will be resumed as a contested hearing to determine whether the plan is confirmable, according to the motion.

Protected Vehicles and Rafael were parties to a teaming agreement under which they jointly owned information, intellectual property rights and associated work product.

A hearing on the global resolution is scheduled for Jan. 28.

Protected Vehicles, a North Charleston, S.C., designer and manufacturer of mine and ballistic protected vehicles, filed for bankruptcy on Feb. 5, 2008. Its Chapter 11 case number is 08-00738.

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