Protected Vehicles Files For Bankruptcy

CHARLESTON, S.C. (AP) — Protected Vehicles, a company that builds bomb-resistant vehicles for the military, filed for Chapter 11 bankruptcy protection, listing $58 million in liabilities and the U.S. Marines as its largest creditor.

 

The North Charleston-based company laid off about 250 workers and ceased operations late last year amid tough times for the armored vehicle industry.

 

In a petition filed Tuesday in U.S. Bankruptcy Court in Columbia, the company listed $24 million in assets. It also listed more than 230 creditors and said 266 employees are owed vacation, salary or commissions.

 

The Marines have a $15.8 million claim against the company, according to court documents.

 

Spokesmen for the Marines and the company did not immediately return telephone messages seeking comment.

 

Last month, two of Protected Vehicles other creditors went to court asking that the company be put into involuntary bankruptcy and its assets liquidated.

 

Under Chapter 11, a company is free from lawsuits while it reorganizes its finances. Any reorganization plan must be approved by creditors.

 

The filing also shows that 10 creditors have outstanding claims against the company in state court.

 

A statement filed with the court estimated Protected Vehicles' future gross monthly income at $6.6 million and monthly net income at $248,000.

 

The bankruptcy petition comes the Marine Corps last year decided to buy a third fewer armored vehicles. And some observers say a drop in violence in Iraq and Afghanistan may mean even fewer future orders.

 

Protected Vehicles was founded in 2005. It was sued last August in federal court by another local manufacturer of armored vehicles, Force Protection, which is based in Ladson about 10 miles from Protected Vehicles.

 

That lawsuit named Protected Vehicles and its founder, Garth Barrett, a former Force Protection president who resigned to start the new business.

 

The suit claims computer fraud, misappropriation of trade secrets, unfair trade practices and breach of contract.