Point Blank Solutions 5/18/11
Today's hearing was not only a status hearing on the bankruptcy proceedings, but also a hearing on the adversarial proceedings brought against PBSOQ in April, 2011 by the brother of the former CEO.
'Two witnesses were examained and cross examined today. Jim Henderson, CEO and Chairman of the Board of Point Blank Solutions was first up as witness. The line of questioning for both witnesses was essentially the same; how much time would be spent on the adversary proceeding vs running the business. Mr. Henderson is cool under pressure and admitted to being fairly well paid to be so (including benefits, in excess of $1 million dollars). He testified to the amount of time spent not only working on the restructuring of the company, both operationally as well as financially, but also the time spent reassuring customers and clients of the company who have been concerned since the company declared bankruptcy.
Scott Avila, Chief Restructuring Officer of Point Blank Solutions was the second witness to be heard today, and he also testified to the amount of time that Henderson spends running the company and working on the restructuring. Avila is responsible for the financial restructuring guidance, but reports to both Henderson and the Board of Directors.
Ultimately, Judge Walsh ordered a 90 day stay on the adversary proceeding, during which time the BK proceedings will continue, possibly bringing Point Blank close to a confirmation process at the end of the 90 days. Judge Walsh will hear arguments to extend the 90 day stay at the end of the 90 days, and will rule depending on the progress of the BK.
AI
