Altegrity Inc. expects to file for chapter 11 protection after reaching the terms of a restructuring agreement with bondholders owed $1.3 billion, the Wall Street Journal reported today. The company, which gained attention after vetting former National Security Agency contractor Edward Snowden, said it finalized an agreement with holders of more than 70 percent of its senior bonds and approximately 95 percent of its junior bonds. The restructuring will put junior note holders in control of the Falls Church, Va.-based company through a debt-for-equity swap, Altegrity said. Some of those note holders, including funds managed by Third Avenue Management, Litespeed Management LLC and Mudrick Capital Management LP, have also agreed to help fund Altegrity’s operations during the restructuring, the company said. Altegrity’s senior bonds, meanwhile, will be amended as part of the restructuring and stay in place.
