CyberDefender Agrees to Sell Assets to Marketer Guthy-Renker in Bankruptcy
By Phil Milford – Feb 23, 2012 8:40 AM ET
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 email@example.com