Firm that vetted Snowden files for Chapter 11 bankruptcy

Written By Unknown on Senin, 09 Februari 2015 | 16.48

Sun Feb 8, 2015 10:44pm EST

Feb 8 (Reuters) - Altegrity Inc, owner of the company that carried out background checks on former NSA contractor Edward Snowden and Navy Yard shooter Aaron Alexis, filed for Chapter 11 bankruptcy protection on Sunday as it implements a restructuring deal with its lenders.

Altegrity, which owns USIS Investigations Services, listed assets and liabilities of more than $1 billion, according to court documents.

The company said some of its lenders, including funds managed by Third Avenue Management, Litespeed Management LLC and Mudrick Capital Management LP, have committed to provide $90 million in debtor-in-possession financing.

Last week, Altegrity said it finalized the terms of a restructuring support agreement with holders of more than $1.3 billion of secured debt and expected to file for bankruptcy protection as part of the restructuring.

A majority of its lenders are backing a restructuring support agreement. The restructuring and the proceeds from the previously disclosed sale of its two businesses are expected to reduce Altegrity's debt by about $700 million, or 40 percent, the company said.

Operations at its HireRight and Kroll units will continue without interruption throughout the process, Falls Church, Virginia-based Altegrity said in a statement.

HireRight focuses on private-sector employers and provides employee background checks, while Kroll provides risk and information management services.

Altegrity reported a cyberattack at its USIS division last August that exposed highly personal employee information at the Department of Homeland Security's headquarters, as well as its U.S. Immigration and Customs Enforcement and U.S. Customs and Border Protection units.

The case is in the United States Bankruptcy Court for the District of Delaware, case no: 15-10226. (Reporting by Supriya Kurane in Bengaluru; Editing by Gopakumar Warrier)

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