Last year, more than $400 billion of bankruptcy claims were traded. These unpaid receivables of vendors, suppliers, landlords, employees, and other creditors, can be a significant loss to creditors looking for immediate cash. Rather than wait years for the bankruptcy court process to issue payment distributions, creditors can now access immediate liquidity by selling their claim to interested buyers. Even in today's digitally interconnected and technologically-enabled world, the processes underlying the bankruptcy claims trading market has remained largely manual and conducted through paper documentation.
Buyers are vexed by painstaking and laborious efforts to source creditor claims (e.g. mass-mailings and cold calls) and undertake due diligence. Creditors are frustrated by a startling lack of transparency and efficiency, with limited options to sell their claim and hurdles to getting paid in a timely fashion. When an agreement is made, the financial and legal steps to formalize the transaction between Buyer, Creditor, and the Bankruptcy Courts are disconnected and inefficient, jeopardizing deal timelines and trades that never materialize.
The result? An antiquated system that creates market inefficiencies for all stakeholders due to a lack of centralization, information parity, and automation. The consequence of which means that in today's operating environment, trading is slow and liquidity is destroyed.
XCLAIM exists to transform it all. By aggregating all US bankruptcy claims into a single centralized marketplace, XCLAIM is creating the world's first platform to electronically trade bankruptcy claims at scale. Our purpose is to create value for all parties in the claims trading ecosystem by bringing balance to the industry, and thus eradicating the inefficiencies of today’s market.
Led by Matthew Sedigh, a 15-year veteran of the distressed debt industry, XCLAIM is a diverse team of passionate technologists, creative thinkers, financial gurus, and legal experts.
Rather than trying to predict the future of this market, we are building it.