PALM BEACH, Fla., June 13, 2013 -- /PRNewswire/ -- Global Digital Solutions, Inc. (OTCPink: GDSI), a company that is positioning itself as a leader in providing knowledge-based and culturally attuned social consulting and security-related solutions in unsettled areas, announced today that its planned merger partner, Airtronic USA, Inc. ("Airtronic"), filed its chapter 11 bankruptcy reorganization plan on June 10, 2013, with the United States Bankruptcy Court for the Northern District of Illinois, Eastern Division.

"The filing of this consensual Plan signals that the end is in sight," said David Loppert, who will become GDSI's Chief Financial Officer after the acquisition with Airtronic is completed.  "Upon confirmation, GDSI is expected to complete its acquisition of Airtronic and Airtronic will emerge from chapter 11 as a debt-free company with adequate working capital provided by GDSI.  This will enable Airtronic to once again compete at the highest levels in its areas of expertise in small arms innovations."

On August 20, 2012, GDSI and Airtronic announced that they had signed a letter of intent to enter into good faith discussions involving a potential strategic combination in which Airtronic would be acquired by GDSI. Having completed those good faith discussions, the companies signed a merger agreement on or about October 16, 2012.  Dr. Merriellyn Kett, Airtronic's President and CEO, will continue serving as CEO of Airtronic once the merger between GDSI and Airtronic is finalized.

"This filing is a very important step for both companies," said GDSI founder and largest shareholder Richard J. Sullivan, who will become Chairman and CEO after the acquisition with Airtronic is completed.   "We hope this reorganization Plan will be confirmed by the court in due course and we look forward to moving forward with the completion of the merger process as quickly as possible."

Founded in 1990, Airtronic is a well-respected, award-winning manufacturer of critical battlefield weapons.  The company provides small arms and small arms spare parts to the U.S. Department of Defense, foreign militaries, and the law enforcement market.  The company's products include grenade launchers, rocket propelled grenade launchers, grenade launcher guns, flex machine guns, grenade machine guns, rifles, and magazines.

Airtronic is a member of the National Small Arms Technology Consortium (NSATC) and the largest woman-owned small arms manufacturing company in the United States.  The company has received commendations from the US Army Tank, Armaments, and Automotive Command and the Defense Logistics Agency for the quality and on-time delivery of its products.

More About Richard J. Sullivan Dick Sullivan is an entrepreneurial pioneer.  In 2001, Sullivan received the prestigious World Economic Forum's "Award for Advanced Chip Technology" presented in Davos, Switzerland. He served as Chairman and CEO of Applied Digital Solutions, where he executed a technology rollup involving 42 acquisitions that succeeded in increasing the company's share price from $2.50 to a peak of $18 per share. During Sullivan's decade-long tenure as Chairman and CEO, Applied Digital was one of the highest volume traded stocks on NASDAQ.  Sullivan also served as Chairman and CEO of Digital Angel Corporation and led the effort to spin off VeriChip Corporation.  In 1970, he was a founding member of the management team of Manufacturing Data Systems, Inc., which listed at $7.50 per share and was sold to Schlumberger N.V. in 1980 at $65 per share.