HouseCanary Files for Chapter 11 Bankruptcy Amid Foreclosure Dispute
HouseCanary, a proptech company that supplies real estate listing data to Google, has filed for Chapter 11 bankruptcy protection. The company sought to avoid an impending foreclosure on its operating business and was unable to repay a $30 million credit facility loan from Ocean II PLO LLC.
The loan agreement, established in 2021, went into default when HouseCanary failed to repay the debt upon maturity. Despite negotiating with Ocean II over possible amendments, the company was unable to come to an agreement and instead pursued outside capital and potential sale transactions. However, these efforts were unsuccessful, leading to a scheduled foreclosure auction on September 22.
HouseCanary filed for bankruptcy protection on the same day the court denied its request for a temporary restraining order against the foreclosure. The company has since obtained debtor-in-possession financing of up to $15 million from Condor FundingCo 26 LLC, which will allow it to continue operating while reorganizing its debts.
According to court filings, HouseCanary's core customer businesses are profitable and will remain uninterrupted during the bankruptcy process. The company has also assured customers that there will be no interruptions to their products, data, APIs, support, or customer service. In a statement, CEO Chris Rediger said, 'Today's approvals provide HouseCanary with the liquidity and operating flexibility to keep moving forward while we address our capital structure.'