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HouseCanary wins first-day approval as it seeks Chapter 11 relief

The New Jersey bankruptcy court approved debtor-in-possession financing after HouseCanary defaulted on a $30 million loan.

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HousingWire reports that HouseCanary received U.S. Bankruptcy Court approval of first-day motions and access to debtor-in-possession financing, allowing it to keep operating while it works through Chapter 11.

The company filed for Chapter 11 on Tuesday after defaulting on a $30 million loan in January and moving to block an undisclosed lender from seizing assets.

At a hearing Thursday in the District of New Jersey, the court approved relief that lets HouseCanary maintain customer programs, meet employee obligations, and continue ordinary-course business operations, according to the company.

The court also granted access to DIP financing to support the company during the bankruptcy process, HousingWire said.

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