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Xceligent Files Chapter 7 Bankruptcy

Xceligent Files Chapter 7 Bankruptcy

: Richard West Law Office

One of the biggest commercial real-estate data firms in America, Xceligent, filed for liquidation this week. The decision to shut down the company comes after discussion with CoStar Group to settle litigation over alleged data theft. While companies that wish to remain in business and negotiate with creditors can file for Chapter 11 bankruptcy protection, the embroiled real estate data company decided to shut down its operations for good on December 14, 2017, giving the company’s 250 employees just 30 minutes to gather their belongings and head to the unemployment line.

Xceligent’s Legal Battle

The company Xceligent is owned by the London-based Daily Mail and General Trust and has been engaged in a legal battle with its competition CoStar group for over a year now. The company’s board opted for Chapter 7 bankruptcy liquidation after settlement talks over the lawsuit broke down.  The CEO of Xceligent, Doug Curry, stated that the company CoStar filed the suit as a way to keep its market position and distract the company from its launch in New York. Xceligent countersued in July, accusing the commercial real-estate data competitor was creating a monopoly and engaging in anticompetitive behavior. The discussions were halted when CoStar insisted that Xceligent agree to remove certain material from its website. During the legal battle, Xceligent’s value decreased to nothing and forced the company to turn over any remaining assets to bankruptcy trustees for liquidation.

Chapter 7 Bankruptcy for Business

Normally reserved for individuals with little to no property or income, Chapter 7 bankruptcy is the most common and simplest form of bankruptcy. Chapter 7 bankruptcy doesn’t provide a discharge or exemptions and is the preferred choice of a company that wishes for a simple and orderly liquidation. The simplicity derives from placing the burden of selling assets and paying creditors on the bankruptcy trustee instead of the company owners or board of directors.