We’ve received a bit more info on last month’s shutdown of Verified Identity Pass, operator of the “Clear” system that allowed members to pass quickly through airport security.
The company said on June 22 that had been “unable to negotiate an agreement with its senior creditor to continue operations.” peHUB has now learned that the senior creditor was Morgan Stanley, with Verified Identity owing approximately $33 million.
A loose confederation of investors is kicking the company’s tires a bit, and considering whether to make an offer. But there are two big impediments to a potential deal. First, Verified Identity founder and ex-CEO Steven Brill has sued the company over what he refers to as a salary dispute (the records are sealed). Second, there is a requirement that Verified Identity must erase its user database by October 1, if the company remains dormant. Not sure I understand the mechanics of that requirement, but do know that the company’s user database is its most valuable asset.
Verified Identity was founded in 2004, and raised around $54 million in VC funding. Most of that capital came last year, when Verified Identity Pass raised $44.4 million at a pre-money valuation of approximately $90 million. Spark Capital led that round, and was joined by Syncom Venture Partners, Lockheed Martin, GE Security, RRE Ventures, Baker Capital and Lehman Brothers…