CyberDefender Corp., which provides computer technical support and security services, on Thursday filed for Chapter 11 bankruptcy protection and said it plans to sell most of its assets to a unit of infomercial marketer Guthy-Renker Corp.
In court documents, the company said the bankruptcy was necessary due to “the challenging economic climate” and the “inability to raise capital on the public market.”
The Los Angeles company, which makes software for PC security, antispyware-antivirus, PC optimization and identity theft prevention, did not say in the filings or a separate press release how much buyer GR Match LLC would pay for its assets.
It also said it will be open to higher bids from other potential buyers.
GR Match will provide as much as $4.6 million in debtor-in-possession financing to enable CyberDefender’s daily operations to continue without interruption during the reorganization.
CyberDefender, which filed in Wilmington, Del., lists $7.96 million in assets and $42.5 million in debt.
Guthy-Renker of Santa Monica is one of the world’s largest direct marketing companies. It has been a pioneer in the long-form infomercial format, marketing multimedia programs by self-help guru Tony Robbins and skin and hair care lines promoted by actress Susan Lucci and celebrity stylist Chaz Dean.
Its GR Match LLC unit was an early investor in CyberDefender, and in April 2010 provided the company with $5 million in debt financing. At the time, Guthy-Renker co-CEO Ben Van de Bunt said “We believe there are unrealized opportunities in the market for Internet security software.”
CyberDefender’s shares were down 8 cents, or 50 percent, to 8 cents in midday trading on the Nasdaq.
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