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Data company files for Chapter 7

A prolonged legal battle with a competitor has led to a prominent data company closing its doors, according to business news local to the company. Kentucky IT and real estate professionals may be aware of Xceligent, a commercial real estate data company based in a neighboring state. Founded in 1999, the company has now filed for Chapter 7 bankruptcy after a sustained court battle with another company. 

According to the report, competitor CoStar sued Xceligent back in Dec. 2016 for allegedly attempting to steal and use data and photos that CoStar owned. Xceligent's legal representation called the allegations without merit, but the result was an extended series of legal confrontations between the two companies. Xceligent countersued in July 2017, claiming CoStar was responsible for attempting to form a monopoly. 

Talks were progressing between the two companies when they abruptly broke down this year. The parent company for Xceligent informed investors in November that it now valued Xceligent at zero, according to The Wall Street Journal. The company's 250 employees were informed management was filing for Chapter 7 bankruptcy on Dec. 16. 

In some cases, a Chapter 7 bankruptcy is not prompted by financial mismanagement or misfortune, but rather by other external circumstances. Thankfully, with the support of a dedicated Kentucky bankruptcy attorney, the company will be able to liquidate its assets to pay down creditors and resolve some of the financial burden brought on by the lawsuits they endured. This leaves company ownership in a better position to re-enter the market for future investment opportunities on a stronger financial footing. 

Source: Kansas, MI BizJournal, "Xceligent's legal fight with CoStar leads to bankruptcy", Russell Gray, Dec. 15, 2017

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