A dispute over the fate of more than 25,000 high explosive ammunition cartridges currently held by U.S. Customs at Fort Bragg has led to a lawsuit involving a Canadian investment fund and several defense industry companies. The plaintiff, Ninepoint Canadian Senior Debt Master Fund L.P., filed a verified complaint in the United States District Court for the Eastern District of North Carolina on April 1, 2026, naming Pacem Defense LLC, ALS Inc., Pacem Solution International LLC, Pacem Defence Holdings Inc., and Pacem Estate Holdings LLC as defendants.
According to the complaint, Ninepoint alleges that the defendants defaulted on multiple loan, security, and guaranty agreements which gave Ninepoint a first-priority security interest in nearly all of the defendants’ assets. These assets include approximately 25,024 units of M4301A1 40mm High Explosive Dual Purpose ammunition cartridges—referred to in court documents as “Seized Munitions”—currently stored by U.S. Customs and Border Protection (CBP) at Fort Bragg in Cumberland County, North Carolina.
The legal dispute centers on loan agreements dating back to May 28, 2021. At that time, Pacem Defense LLC and ALS Inc. acted as borrowers while other related entities served as guarantors under an amended and restated loan agreement with Waygar Capital Inc., acting as agent for Ninepoint. The agreements were later supplemented by security arrangements granting Ninepoint interests in nearly all assets belonging to these companies—including inventory such as the Seized Munitions—and further guaranteed through additional contracts executed in April and May 2021.
Ninepoint claims it perfected its security interests by filing Uniform Commercial Code financing statements across relevant jurisdictions for each defendant entity. Despite these measures, the plaintiff states that defaults occurred when the borrowers failed to pay outstanding principal, accrued interest, and other charges due at maturity on December 31, 2024.
The complaint details that after acquiring full rights from Waygar Capital Inc. through an assignment dated August 6, 2025, Ninepoint made written demand for payment on August 18, 2025. The plaintiff reports that defendants failed or refused to pay what was owed—an amount exceeding $95 million Canadian dollars as of November 2025.
Ninepoint asserts that although CBP physically holds the Seized Munitions at Fort Bragg due to their export-controlled status, defendants retain authority over their release and disposition. The fund expresses concern that without immediate judicial intervention “Defendants’ actions will result in the release and transfer of the Seized Munitions beyond the jurisdiction of this Court,” which would “irreparably impair Ninepoint’s rights as a secured creditor.” Supporting this claim are references to sworn filings from related litigation where defendants acknowledged ongoing efforts to obtain and sell these munitions.
The plaintiff argues that monetary damages alone would be inadequate because “the Collateral is specific and identifiable” and proceeds could become untraceable if transferred abroad. Accordingly, Ninepoint seeks declaratory relief affirming its right to control disposition of the munitions upon default; immediate possession of them once released from CBP custody; appointment of a receiver or custodian if necessary; authorization to sell them with proceeds applied toward outstanding debts; a temporary restraining order; preliminary injunctions preventing any transfer or sale by defendants; attorneys’ fees; costs; and any further relief deemed appropriate by the court.
In support of its request for emergency relief under Rule 65 of Federal Rules of Civil Procedure, Ninepoint states: “Plaintiff is likely to succeed on the merits because: (a) Plaintiff holds a valid…first-priority security interest… (b) Defendants are in default…and (c) Defendants have no right to dispose of the Collateral without Plaintiff’s consent.” The complaint also contends that public interest favors granting such relief due to concerns about export-controlled munitions leaving U.S. jurisdiction.
The case was filed by attorneys Kelly Colquette Hanley (Williams Mullen) in Raleigh, North Carolina and Lara Kasten Hoffman (Pryor Cashman LLP) in New York City on behalf of Ninepoint Canadian Senior Debt Master Fund L.P., with anticipated pro hac vice admission for Hoffman. The case is identified as Civil Action No. 5:26-cv-207.
