New Equity Committee Sinks Point Blank Ch. 11 Plan

Law360, New York (April 21, 2011, 5:22 PM EDT) -- Point Blank Solutions Inc. shareholders derailed the company's Chapter 11 plan Thursday in Delaware by saying two hedge funds heading the equity committee misled them about the plan to secure an undue portion of recoveries from litigation against former management.

At the behest of a newly reconstituted equity committee, Judge Peter J. Walsh agreed Thursday to push back consideration of Point Blank’s disclosure statement over the allegations and missing disclosures regarding potential litigation recoveries, saying "the case is starting all over."

The body armor maker, formerly...
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