IBahn Corp., a provider of Internet services to hotels, sought bankruptcy protection in Delaware, citing a loss of contracts with largest customer Marriott International Inc. and patent litigation costs.

IBahn Chief Financial Officer Ryan Jonson said the company had assets of $13.6 million and it listed liabilities of as much as $50 million in the Chapter 11 filing today in U.S. Bankruptcy Court in Wilmington, Delaware.

IBahn, based in Salt Lake City, Utah, said in a statement that it appointed Edward Helvey as its new chief executive officer and that it will continue to operate as it restructures. Marriott said in the statement that it would remain a “loyal” customer through the restructuring. The company’s international operations aren’t included in the bankruptcy filings, according to the statement.

Marriott in 2009 sought vendor certification to establish consistent standards at its hotels, according to Jonson’s filing. IBahn didn’t achieve the certification until 2013, and lost a third of the Marriott contracts between 2011 and 2013, Jonson said.

“The loss of revenue has made restructuring of the iBahn’s business essential to ongoing operations,” he said. Defending patent litigation has also depleted cash and caused severe financial strain on the company, Jonson said.

Ibahn was a target of China-based hackers, according to a U.S. intelligence official familiar with the matter who spoke on a condition of anonymity in December, 2011.

The case is In re: iBahn Corp. 13-12285. U.S. Bankruptcy Court District of Delaware (Wilmington).

–Editors: Douglas Wong, Anthony Aarons

To contact the reporter on this story: Joe Schneider in Sydney at jschneider5@bloomberg.net

To contact the editor responsible for this story: Douglas Wong at dwong19@bloomberg.net

Tags: marriott, wi-fi