Tech support company, CyberDefender, to sell assets in bankruptcy

CyberDefender Corp., a company that provides technical support security services, filed for Chapter 11 bankruptcy protection on Thursday.

In their bankruptcy filing in a Delaware court, CyberDefender listed their debts at $42 million with assets of $7.69 million. They will sell some of their assets to electronic marketing company Gunthy-Renker Corp.

Gunthy- Renker sells a variety of products which include skin care, hair care and DVDS through infomercials and direct marketing.

Los Angeles-based CyberDefender has also secured a $4.6 million loan from buyer GR Match LLC to continue operations during the bankruptcy process, according to Bloomberg.

CyberDefender offers services to consumers through MaxMySpeed, MyCleanPC and DoubleMySpeed and has 667,000 subscribers. The company will also continue to pay wages and benefits for its 300 full- time employees and will also honor all post-filing petitions from vendors.

Bankruptcy attorneys often recommend Chapter 11 reorganization to businesses to continue operating.

Interim Chief Executive Officer Kevin Harris said the bankruptcy was “due in part to the challenging economic climate” and the “inability to raise capital on the public market.”

Financial problems are all too common for businesses in these difficult economic times, but with the help of a bankruptcy lawyer these problems can be resolved.

The exact type of bankruptcy structure can be determined by a bankruptcy attorney after an evaluation of a company’s debts and assets. Some bankruptcy structures call for a business to liquidate assets and the company is dissolved.