A financially troubled Colorado Springs cybersecurity company will have another month to settle $10.7 million in debts before its assets are auctioned off, likely putting it out of business.
The assets of root9b Holdings Inc., originally scheduled to go to bid Thursday afternoon at the offices of a Phoenix law firm, will instead be auctioned off on Sept. 28, according to a Securities and Exchange Commission filing the company made on Friday.
An insurance company that represents 13 of the company's creditors notified root9b Holdings of the postponement, the filing states. Scottsdale, Ariz.-based Centriole Reinsurance Co. Ltd., will hold the auction, to include "all assets, property and interests" of root9b, as the lenders seek to foreclose on defaulted notes issued by the company, according to a previous SEC filing.
Root9b "is continuing to work with the secured creditors and other potential investors to raise capital before the auction concludes," the company said in its Friday filing. "However, there can be no assurance that the company will be successful in its efforts."
If all of the assets are auctioned off, root9B's stock will become worth little to nothing. But whoever buys the assets could use them to maintain the company's 154-employee cybersecurity operation and continue to service government and commercial clients.
Contact Rachel Riley: 636-0108