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[January 2010]
Protective Products of America Files Voluntary Petition for Chapter 11 Reorganisation & Seeks Approval of Sale to Affiliate of Sun Capital Partners
Protective Products of America Inc (Sunrise, FL, USA) – formerly known as Ceramic Protection Corp and a manufacturer and distributor of advanced products in ballistics protection – has reported that PPA and each of its four subsidiaries have filed a voluntary petition for Chapter 11 reorganisation, which also calls for the approval of their agreement to sell substantially all of their assets and business as a going concern to an affiliate of Sun Capital Partners Inc, a leading private investment firm. Under the terms of the agreement, the transaction is subject to a higher and better offer by another party in approximately 35 days. The Chapter 11 proceedings are pending in the Southern District of Florida. PPA is a publicly traded company on the Toronto Stock Exchange.
"We are pleased with our agreement to be acquired by Sun Capital in connection with our bankruptcy cases and with Bankruptcy Court approval," said Patrick Caldwell, PPA's Chief Executive Officer. "The firm is a premier global private equity firm with over $8 billion in assets under management, and has managed the successful turnaround of over 100 portfolio companies over the past 15 years."
PPA intends to maintain all normal business operations throughout the administration of the bankruptcy cases. Subject to Bankruptcy Court approval, PPA will use the cash flow from its ongoing operations together with additional financing from its existing lender, Canadian Imperial Bank of Commerce, to meet its working capital needs throughout the reorganisation process. PPA has filed a motion with the Bankruptcy Court seeking to establish auction and sale procedures to facilitate a quick and orderly sale of substantially all of PPA's and its subsidiaries' assets, using the 35-day timeline set forth in the purchase agreement with Sun Capital. The reorganisation and acquisition will eliminate PPA's funded indebtedness and substantially reduce its other liabilities.
PPA has filed a series of first day motions in the Bankruptcy Court in Fort Lauderdale, Florida, seeking to ensure that it will not have any interruption in maintaining and honouring all of its commitments to its employees and customers. The motions also address PPA's continued ability to pay its vendors, the retention of various professional advisors and other matters.
www.protectiveproductsofamerica.com
ENDS