Falls Church, Virginia-based Altegrity, Inc., which is funded by a number of investment banks and venture capital firms, said the USIS business will be shut down and liquidated, while HireRight and Kroll will continue to operate under bankruptcy protection.
According to the Wall Street Journal, Altegrity blamed its financial problems largely on a massive cyberattack last year on a division of its business that provided background checks to U.S. federal government agencies. The incident caused the company to lose key government contracts and forced them to lay off more than 2,500 employees. The company is still under investigation by the Justice Department for fraud.
In November 2014, the Wall Street Journal reported that senior note holders for Altegrity negotiated a “make-whole” provision designed to increase their odds of a large payout if the company files for bankruptcy. It is unclear if this is still a part of the company’s restructuring plan.
Sources:
The Wall Street Journal, 2/10/15 – http://www.wsj.com/articles/altegrity-files-for-chapter-11-bankruptcy-1423446150
The Wall Street Journal, 11/16/14 – http://www.wsj.com/articles/altegrity-debt-investors-aim-for-rainy-day-payout-1416179983
Alegrity, Inc., 2/3/15 – http://www.altegrity.com/Pdfs/Altegrity-RSA-Press-Release.pdf
Providence Business News, 2/9/15 – http://pbn.com/Altegrity-files-bankruptcy-after-state-sponsored-breach,103422
Posted: February 11, 2015