Coronavirus (COVID-19): How Xclaim is Responding and Helping

Coronavirus (COVID-19): How Xclaim is Responding and Helping

As 2019 came to a close, we all raised our glasses to the new decade and counted down as the clock struck midnight, unaware of what 2020 had in store. Now, here we are, in the midst of a pandemic that has threatened countless people and effectively stopped the global economy.

Today, we raise our glasses to the frontline workers, first responders, every nurse, doctor and hospital staff member, risking their own lives to care for those affected by the Coronavirus and to all the scientists hunting for a cure. Our deepest sympathy goes out to those suffering, and to the families who have lost their loved ones.

We also recognize the devastating impact this difficult time has had on so many hardworking people who have lost their jobs, and on the many companies with no choice but to close their doors indefinitely, or even permanently.

At XCLAIM, we are honored to be in a position to help businesses and their workers during what could be the worst moment in their lives and careers. We are excited to launch our platform at this time and offer some relief for these companies that are deeply affected by the ripple effects of current events.

XCLAIM’s Service as a Solution

When a business files for Chapter 11 Bankruptcy (legally termed as the “debtor”), its vast network of vendors, suppliers, business partners, landlords, and lenders are left to deal with the consequences of unpaid bills and invoices. These parties who are entitled to payment from the debtor are collectively known as the “creditors”, and they’ve become unwitting victims to the debtor's unfortunate financial circumstances.

To assert their legal rights to a recovery, creditors file a Proof of Claim against the debtor in the bankruptcy court. The Ch.11 bankruptcy process can take years before the court approves payment distributions or equitable remedies for creditor claims. This lengthy process can further exacerbate problems for creditors that are already in a precarious financial position. Instead, creditors can opt to sell your bankruptcy claim against the debtor, by trading their claim’s ownership to an interested buyer in return for immediate cash.

The XCLAIM Marketplace provides a turn-key solution that empowers creditors to unlock and recover value on their illiquid bankruptcy claims, simplifying the settlement process and minimizing payment risks. XCLAIM provides an alternate way for creditors to recover losses, stay in business, pay their employees, and potentially stave off bankruptcy themselves.  

And what better time for our platform to launch? As economists are predicting a deep recession, many major corporations are on the brink of filing for Chapter 11 bankruptcy. We are pleased to provide our solution for creditor recovery by delivering marketplace efficiencies of scale to a traditionally non-digital process.

XCLAIM’s Accelerated Growth in Hiring, Triples Headcount

When we embarked on our mission to build XCLAIM, we did not anticipate the devastation of the COVID-19 pandemic, nor did we expect its drastic slowdown to global commerce. It’s been heart-wrenching for us to see the Coronavirus’ ripple effect throughout the economy and the millions of now unemployed workers. And yet, we’ve found ourselves in a strange turn of events, where this has unexpectedly become a tailwind for us.

While so many employers are furloughing or sadly laying off their employees, XCLAIM has been fortunate to keep our entire team intact. In fact, we have accelerated our hiring and tripled our full-time staff since the start of 2020, despite the enforced work-from-home requirements, and we are still hiring for several open positions. We are overjoyed to be able to provide secure employment to our XCLAIMers, while also increasingly emboldened to lend a helping hand to businesses at this dark time.

With the shift to sheltering in place, the world now relies on internet technologies more than ever before. By developing the XCLAIM Marketplace, we have made it possible for creditors and buyers to trade bankruptcy claims in a fully digital manner, while also allowing our employees to safely work from the comfort of their homes.

XCLAIM’s New WFH Culture  

The Coronavirus-induced social distancing protocol has caused a drastic shift for our company, from being entirely co-located in our Los Angeles office to now fully distributed in a remote work-from-home setting. At XCLAIM, we take our employees’ physical and mental health very seriously. Even before Californians were ordered to shelter-in-place, we requested our entire team to begin working from home to stay safe.

Early on, we understood the vulnerabilities that may accompany self-isolation. From our daily morning coffee chats to our weekly virtual happy hours, we’ve made it a priority to maintain our familial culture and stay connected with each other while honoring social distancing measures. We keep things light-hearted with quarantine hairstyle challenges, April Fool’s pranks, shared online games, and non-work related discussion channels on Slack.  

We’re happy to say that our transition out of the regular office to working remotely has been smooth, but to further ensure that our employees are thriving, we’ve added complimentary mental health services. Our staff now has access to Meru-Health, an app-based program that provides a digital clinic for treatment of depression, anxiety, chronic stress and burnout; Calm, a meditation and relaxation app for improving mind-body wellness; and Rise Science, an app for optimizing nightly routines to enjoy more restful sleep. The health of our company relies on the health of our team.

XCLAIM’s Care for the Community

In addition to helping our own XCLAIM family keep their spirits lifted during this time of COVID-19 crisis, we’ve found ways to help our communities. As a team and as individuals, XCLAIM has made cash donations to several nonprofit organizations offering relief for those affected by COVID-19, and several of us are participating in a virtual 5k run with all proceeds going to Feeding America.

Our employees have voluntarily taken the time to donate and deliver facemasks to frontline healthcare professionals and essential workers, some of which were even 3D-printed at home. We have also continued support of local businesses and establishments, including restaurants, schools and daycares. And on a personal level, we’ve separately assisted our loved ones and neighbors by grocery shopping for them, and delivering supplies and necessities to those at-risk so they can remain safely at home.

XCLAIM was created with one mission at heart: to help businesses and the people they employ. We are incredibly proud to introduce the world to our Bankruptcy Claims Marketplace and to help communities and businesses recover from the negative financial impact of the COVID-19 pandemic.