Former NS8 requests another extension of exclusive plan periods

By Sarah Lizee

Olympia, Wash., Oct. 26 – Cyber Litigation Inc., formerly NS8, Inc., is seeking another extension of its exclusive periods to file and solicit votes on a Chapter 11 plan, according to a motion filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

Specifically, the company asked the court to extend the plan filing period through March 22 from Nov. 22 and the solicitation period through May 24 from Jan. 24.

The company has been under Chapter 11 for about one year in the wake of the arrest of its former chief executive officer, Adam Rogas, for securities fraud.

During this time, the company said it has focused its efforts to identify and monetize its assets and administer its estate.

Specifically, the company has ensured the smooth transition of its remaining pre-petition operations into Chapter 11, sold substantially all of its assets, complied with ongoing governmental investigations, and implemented a broad litigation and asset recovery process, including an extensive investigation into Rogas’ wide-ranging fraud and the parties that improperly benefitted from it, Cyber Litigation said.

The company said its ongoing investigation continues to produce significant results for the estate and its creditors, including settlements with former co-founders Paul Korol, Sean Clauretie and Phil Vizzaccaro, resulting in settlements of nearly $20 million.

Those settlement proceeds have enabled the debtor to repay in full its post-petition financing and satisfy all administrative expenses in the ordinary course, as well as provide adequate resources to fund a post-confirmation process.

The company said it is formulating a plan and expects to file one soon, potentially before the end of the current exclusive filing period.

However, the company said that, out of an abundance of caution, it is seeking a further extension of the exclusive periods to maintain exclusivity throughout its plan process to conserve estate resources and avoid competing plans.

NS8 is a cyberfraud-prevention company based in Las Vegas. The company filed Chapter 11 bankruptcy on Oct. 27, 2020 under case number 20-12702.

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