Altegrity, Inc., who bills itself on its website as “The world’s leading brands in risk solutions, security, ediscovery, data recovery and employment screening,” filed for chapter 11 protection in Delaware on February 8, 2015.  It was joined by 37 of its affiliates.  The bankruptcy case is docketed as case no. 15-10226, and has been assigned to the Honorable Laurie Selber Silverstein.

A copy of the petition is here.  According to the Declaration of Jeffrey Campbell, President and CFO, Altegrity and its debtor and non-debtor subsidiaries makes up “a privately held global, diversified risk and information services company serving commercial customers and government entities.”  Together, they employ 3300 employees.  According to Mr. Campbell, for the last 12 months ending June 30, 2014, the Company generated approximately $1.4 billion in revenue on a consolidated basis.  As of that time, the debtors had approximately $1.7 billion in assets and $2.1 billion in liabilities on a consolidated basis.

According to Mr. Campbell, in August 2014, the debtors’ cash performance was “interrupted by an unforeseen business disruption relating to the companies’ USIS business, “which, until recently, provided background investigations and information management and security services to U.S. federal government agencies.”  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 errosion in the USIS business, which caused the overall Company’s liquidity position and projected financial performance to deteriorate dramatically.”

Mr. Campbell explains in his affidavit that the debtors have “again achieved broad consensus among their funded debtholders around the terms of a financial restructuring that will allow their remaining businesses to continue uninterrupted.”  He notes that the debtors have entered into a Restructuring Support Agreement in which “holders of approximately 78% of their funded first lien debt and approximately 95% of their second and third lien debt have agreed to support a comprehensive restructuring that, among other things, provides the Debtors with $90 million of new capital, modifies key debt covenants . . . and reduces the amount of the Company’s overall indebtedness by approximately 40%.”