Altegrity Is Bankrupt
March 11, 2015
Altegrity, Inc. has filed for chapter 11 bankruptcy. JD Supra Business Advisor reports on the development in “Altegrity, Inc.,. Global Provider Of Risk Solutions, Files Chapter 11.” Altegrity is a global brand in ediscovery, risk solutions, security, employment screening, and data recovery. The entire company and its thirty-seven affiliates are under the Delaware bankruptcy case no. 15-1-226.
The company was making money in the last fiscal year with $1.4 billion in revenue. Altegrity’s debtors did own $1.7 billion in assets and had $2.1 billion in liabilities. It did not seem that the company was headed towards financial disaster, but President and CFO Jeffrey Campbell that the company filed for chapter 11 due to a disruption in its USIS business. This meant Altegrity provided information management and background investigations to the federal government.
“The interruption stemmed from a “state-sponsored cyber-attack” and the subsequent notice received from the U.S. Office of Personnel Management (OPM) that temporarily suspended all work performed by USIS on a substantial OPM contract. These actions ‘caused a substantial erosion in the USIS business, which caused the overall Company’s liquidity position and projected financial performance to deteriorate dramatically.’ ”
Altegrity is looking to restructure its financials to keep its remaining businesses running steadily. They are also entering a Restructuring Support Agreement to reduce debt by forty percent and ad $90 million in new capital.
Altegrity lost its business to a cyber attack. Have insurance companies created protection plans that cover digital attacks or in this case cover loses related to them?
Whitney Grace, March 11, 2015
Sponsored by ArnoldIT.com, developer of Augmentext
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