COLUMBUS, Ohio, June 5, 2012 /PRNewswire/ -- One Exchange Street, Inc. (www.oneexchangestreet.com) today announced the launch of its innovative platform enabling online trading in select types of bankruptcy claims including general unsecured and administrative claims.
One Exchange Street's proprietary trading platform creates a liquid and transparent online marketplace that provides price discovery and real-time trade execution via standardized claim transfer agreements to buyers and sellers of bankruptcy claims.
When a company files for bankruptcy, its creditors usually do not know how much money they will receive for their claim, when they will receive it, or what form of consideration they will receive. As a result, many times creditors, especially trade creditors, prefer to sell their claim, thereby increasing liquidity while mitigating the cost and hassle associated with the bankruptcy process. Presently, however, there is no centralized platform providing transparency into, or standardization of, the sales process.
"Our new trading platform is designed to introduce transparency and standardization into the historically inefficient and opaque market for bankruptcy claims," says Todd Zoha, Co-Founder and CEO, One Exchange Street.
One Exchange Street provides its service to registered members via a secure and independent trading platform. After answering a few questions and uploading select diligence materials to validate their claim, creditors will have access to relevant information in order to help them, and their advisors, value their bankruptcy claim prior to setting their asking price.
Buyers can review and bid on all claims listed on the platform, or instead, place resting bids for select types of claims in which they may be interested.
When a trade crosses, the orders are executed immediately via standardized claim transfer agreements and settled within five business days. One Exchange Street does not charge fees to access its platform, relying instead on a per trade commission.
"We believe this platform will offer claim buyers enhanced liquidity and incremental investment opportunities in a market which has been gaining traction as investors continue to search for uncorrelated returns," says Sean O'Riordan, Co-Founder and CFO.
About One Exchange Street, Inc.
One Exchange Street is a proprietary online trading platform for bankruptcy claims. The company, headquartered in Columbus, Ohio, was co-founded by Todd Zoha and Sean O'Riordan, both former AlixPartners' restructuring professionals. The two identified critical transparency and efficiency issues inherent in the bankruptcy market in February 2011 while advising the ad hoc group of Lehman Brothers Holdings Inc. creditors. In January 2012, they founded One Exchange Street, Inc. and, in April 2012, closed a $1.0 million seed round. They intend to return to the market to raise a Series A round by the end of 2012. For more information, please visit www.oneexchangestreet.com.
SOURCE One Exchange Street, Inc.