Compounding the financial strain, iLearningEngines disclosed in a recent securities filing that a cyberattack compromised sensitive files, redirected a $250,000 wire payment that could not be recovered, and deleted emails from its network. The incident further destabilized the company’s already fragile position.
At a December 20 board meeting, interim CEO Thomas Olivier briefed directors on a potential financing offer received the day before from an unaffiliated entity. Following this update, the board voted to proceed with the Chapter 11 filing.
“We appreciate the continued support of our customers, partners, and employees,” Olivier said in a statement. “Our hope is that this process will allow us to emerge as a stronger, more robust business capable of serving our stakeholders over the long term.”
The case, assigned to U.S. Bankruptcy Judge Laurie Selber Silverstein, marks a significant chapter for the embattled company. Counsel for iLearningEngines, Ian J. Bambrick of Faegre Drinker Biddle & Reath LLP, declined to comment on Monday.
