My Alarm Center has filed for Chapter 11 bankruptcy protection, according to documents recently filed in federal court. Read the company’s full petition here.
Per the company’s filings, My Alarm Center, which was previously known as Alarm Capital Alliance, lists its creditors as numbering in the hundreds with total liabilities between $100 million and $500 million.
Among the company’s largest creditors include Goldman Sachs, which it owes nearly $34 million, and Invesco Credit Partners, which is owed almost $15 million. My Alarm Center also lists a $6.8 million Paycheck Protection Program (PPP) loan it received through Woodforest National Bank as one its largest unsecured claims.
In a statement provided to SecurityInfoWatch.com, My Alarm Center said that its lenders and other key stakeholder have agreed to support its reorganization plan, which provides for the elimination of approximately $235 million in legacy debt obligations, strengthens its financial structure and supports its long-term growth plans.
“The residential security industry faced numerous challenges over the last year, including multiple long-time industry lenders deciding to exit the space. This shift in the debt market was further exacerbated by the unprecedented COVID-19 pandemic resulting in significant pressure on cash flow and liquidity,” My Alarm Center CEO Amy Kothari said in the statement. “As a result, we took decisive action to address these challenges and deleverage our balance sheet to position us for future growth and sustainable success. We are grateful for the support from our lenders and advisors throughout this process and especially thankful for the incredible patience, hard work and dedication of our employees. We are highly confident that the work we have done and the path we have chosen will result in a much stronger capital structure and bright future for our company, our partners, and our employees, allowing us to continue to provide superior support and service to our customers.”
The company added that it would continue to operate in the ordinary course of business during the restructuring and that it had secured $15 million from its senior lenders to continue providing service to customers as well as meet financial obligations to its vendors and employees.
Founded in 2000, My Alarm Center gained widespread attention across the industry in recent years for its hybrid approach to the market, which combines acquisitions, dealer programs and direct-to-consumer sales. As recently as 2015, My Alarm Center ranked as high as fifth on Security Business magazine’s Fast50 list, an annual ranking of the industry’s fastest growing integration firms. The company also made the Fast50 in 2018 and 2019, the last two years that the list was published.
Joel Griffin is the Editor-in-Chief of SecurityInfoWatch.com and a veteran security journalist. You can reach him at [email protected].
