Headquartered in El Segundo, PeerStreet Inc. and its affiliated companies have filed for protection under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. This filing follows their earlier decision to lay off two-thirds of their employees this year.
Founded in 2013, PeerStreet provided an online platform that enabled accredited investors, funds and institutions to access real estate-related debt investments which were historically difficult to invest into as well as allowed lenders and borrowers access capital that was previously hard for them to obtain.
According to The Wall Street Journal’s report on this filing, reduced mortgage demand combined with scarcer venture-capital funding are cited as factors leading up it it. Through bankruptcy proceedings they will seek out a series of transactions intended at maximizing value from all stakeholders by selling off substantially all assets including mortgage loan assets and technology platform associated with PeerStreet .
Pictured: Headquarters building located in El Segundo belongingto Continental Development Corporation (Photo courtesy).
