CyberDefender Corp. (CYDE), a provider of
computer technical support and security services, filed for
Chapter 11 bankruptcy protection and agreed to sell most of its
assets to a unit of electronic marketer Guthy-Renker Corp.
CyberDefender listed $7.96 million in assets and
$42.5 million in debt in documents filed in U.S. Bankruptcy
Court in Wilmington, Delaware, today.
Daily operations “would continue without interruption
during the sale process” and buyer GR Match LLC will provide as
much as $4.6 million in financing for continued operations, Los
Angeles-based CyberDefender said in a statement.
The company provides services through the MyCleanPc,
MaxMySpeed and DoubleMySpeed brands.
CyberDefender reported $53.5 million in revenue for the
year ended Sept. 30, with a net loss of $39.5 million, according
to data compiled by Bloomberg News.
The company has 322 full-time employees and 677,000
subscribers, interim Chief Executive Officer Kevin Harris said
in court documents.
He said the bankruptcy was “due in part to the challenging
economic climate” and “the inability to raise capital on the
public market.”
Among the company’s largest unsecured creditors listed in
court papers was Sutherland Global Services of Pittsford, New
York, owed $1.91 million in trade debt.
The case is In re CyberDefender Corp., 12-10633, U.S.
Bankruptcy Court, District of Delaware (Wilmington).
To contact the reporter on this story:
Phil Milford in Wilmington, Delaware, at
pmilford@bloomberg.net
To contact the editor responsible for this story:
John Pickering at jpickering@bloomberg.net
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