Founded in 2013, PeerStreet was a platform for online investing in real-estate debt. The company enabled accredited investors, funds and institutions to access certain real estate-related debt investments that were historically difficult to invest in and permitted lenders and borrowers to access capital that has been historically difficult for them to obtain. Recently, the El Segundo headquartered company filed for protection under Chapter 11 of the United States Bankruptcy Code with the United States Bankruptcy Court for the District of Delaware after laying off two thirds of its employees earlier this year.
The Wall Street Journal cited “reduced mortgage demand and scarcer venture-capital funding” as factors leading up to their filing. Through its bankruptcy filing, PeerStreet will seek out buyers who can maximize value from all stakeholders by selling substantially all assets including mortgage loan assets and technology platform through a series of transactions.
