Protected Vehicles creditors committee again asks court to convert case to Chapter 7 liquidation

By Jennifer Lanning Drey

Portland, Ore., June 4 - Protected Vehicles Inc.'s official committee of unsecured creditors filed a second motion asking the U.S. Bankruptcy Court for the District of South Carolina to convert the company's Chapter 11 bankruptcy case to Chapter 7 liquidation, according to a Wednesday filing made with the court.

The committee's prior conversion request was denied in a March 25 hearing when the court ruled that the committee had failed to show there was an absence of a reasonable likelihood of rehabilitation.

In the more recent filing, the creditors argued the case should be converted because the company continues to suffer substantial losses and has not been able to find additional funding sources, a buyer or an investor.

The creditors committee further claimed that Protected Vehicles' estate has been mismanaged because a prior motion filed by the company for permission to use cash collateral contained significant errors.

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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