HouseCanary Files for Chapter 11 Bankruptcy Amid Google Listings Deal
HouseCanary, an AI-powered real estate brokerage, has filed for Chapter 11 bankruptcy in Bankruptcy Court for the District of New Jersey. This move comes just three months after the company announced a significant deal with Google to expand its listings nationwide.
The filing was seemingly timed to prevent secured creditor Ocean II PLO LLC from holding a public foreclosure sale in California, which was scheduled for Tuesday. In this scenario, all of HouseCanary's assets and property would have been tied up in the foreclosure sale, including deposit and security accounts, equipment, inventory, investment properties, and proceeds.
However, certain assets were excluded from the foreclosure notice, specifically claims and proceeds related to litigation with Amrock Inc. and Quicken Loans Inc. in Texas dating back to 2016 and 2018, respectively.
The Chapter 11 filing states that funds will be available to distribute to HouseCanary's unsecured creditors, with estimated assets and liabilities ranging between $100 to $500 million. The non-insider creditors with the 30 largest unsecured claims in the company include Black Knight Technologies, the National Association of Realtors, Amazon Web Services, Google Ads, and Facebook Ads.