Cyber firm Skybox Security files for insolvency as debts spiral
Skybox Security’s Israeli unit, unable to pay February salaries, seeks court intervention as debts to employees, suppliers, and banks mount.
Israeli cybersecurity company Skybox Security filed a request with the Tel Aviv District Court on Sunday for an order to open proceedings. The company has not paid its employees their February salaries, with debts to them amounting to approximately NIS 10 million ($2.78M).
Last week, Calcalist revealed that the Israeli company, which employed approximately 100 people and has raised about $330 million to date, had laid off its employees in Israel and was shutting down. Now, the court will determine the company's future—whether liquidation or rehabilitation.
According to the request submitted through attorneys Pinni Yaniv and Shahar Kedem of the Meitar law firm, Skybox was established in Israel in 2002 by its parent company, Skybox Security Inc., which is registered in the U.S., for research and development purposes. The parent company specializes in cybersecurity and provides software for security policy management, threat and vulnerability management, and other related fields.
The request states that the parent company has recently faced financial difficulties, leading to a halt in funding to its Israeli subsidiary. As a result, Skybox Israel has been unable to continue operations or pay employee salaries in recent months.
The filing also reveals that Skybox Security has debts beyond employee salaries, including approximately NIS 5 million ($1.39M) owed to suppliers, around $2.2 million in unpaid rent, and roughly NIS 900,000 ($250,000) owed to Bank Leumi.
Additionally, the company has debts to J.P. Morgan, which serves as a trustee for lenders. The request claims that Skybox Security pledged all of its assets as collateral to secure the parent company’s debts, with the total amount of secured debt reaching approximately $26 million.
