iDefense files for bankruptcy

August 24, 2001

By Michael P. Bruno,

Fairfax-based Internet security firm iDefense Inc., which was widely quoted by news media during the supposed U.S.-China hacking battle in the spring, has filed for voluntary Chapter 11 bankruptcy protection.

In a filing with the U.S. Bankruptcy Court for the Eastern District of Virginia in Alexandria, the company listed assets and liabilities between approximately $1 million and $10 million, each.

IDefense had 100 to 199 creditors, according to the filing. Of iDefense's top 20 unsecured creditors, Blue Vector of New York was listed with the largest claim, at $1.4 million.

Other major creditors included PSINet, Winstar,, Digex Inc. and McGuire, Woods, Battle & Boothe, along with several individuals.

The bankruptcy filing also included a term sheet for debtor-in-possession financing for iDefense from e-Capital Investments PLC for just more than $200,000.

The company started in May 1998 as Infrastructure Forum Inc. but changed its name to Infrastructure Defense Inc. - doing business as iDefense - in July 1998, according to the company's Web site. The company received initial funding from USWeb/CKS.

In January, Brian Kelly was appointed as the company's chief executive, taking the reins from cofounder James Adams. IDefense listed clients including Citigroup, Microsoft, the U.S. Coast Guard, the British Ministry of Defense and the U.S. Departments of Defense, Navy and Agriculture.

The next hearing in the case is scheduled for Sept. 11.

Reported by,

main page ATTRITION feedback