Jul 15, 2016 ยท 1 minute

Last month I reported on a lawsuit filed against Silent Circle, makers of the super-secure Black Phone.

The suit, filed by "manufacturing partner" Geeksphone alleged that Silent Circle was secretly shifting cash offshore to avoid paying mounting debts, and that the company was effectively bankrupt.

In response to the story Vic Hyder, Chief Strategy Officer of Silent Circle told me:

[T]o quote Mark Twain, “the reports of my death have been greatly exaggerated.” Despite what is in Geeksphone’s claims and suggested by a few, Silent Circle is not considering bankruptcy and we are pushing ahead according to plan.  

However, when I asked Hyder to confirm that the company had enough cash to meet its obligations, he declined to comment further. 

Today we know why.

According to an email from the company, Silent Circle has raised $50 million in Series C funding, led by Santander Bank.

 The company will use the growth capital to expand product development, customer service, business development and marketing activities while eliminating its debt. 

The fact that debt is specifically cited in the announcement suggests that the company had been periliously close to running out of cash, or even had run out of cash -- but that the wolves have been kept away from the door, for now at least.