"(Bloomberg/Steven Church) The owner of former job recruitment sites CareerBuilder and Monster, which blamed artificial intelligence for their demise, won court approval to end a liquidation case by paying lenders and other creditors less than 10% of what they are owed. Under the bankruptcy payout plan, noteholders and lenders owed nearly $363 million will divide up about $33.6 million that was raised from the sale of businesses affiliated with the websites."
"As much as $3 million will go to other unsecured creditors, according to court documents. The job-hunting sites failed less than a year after they were combined, brought down by a slowdown in corporate hiring and competition from hiring tools driven by AI. The two had been struggling with declining revenue amid a growing number of job recruitment sites, including Indeed and ZipRecruiter, the company said in court papers."
"After filing bankruptcy in June, the parent company, Zen JV, LLC, held an auction for its assets. The sale brought in $67 million to pay creditors and for the cost of the bankruptcy case. It was a very challenging case, company bankruptcy Zachary I. Shapiro said in federal court in Wilmington, Delaware on Tuesday."
Zen JV LLC, owner of CareerBuilder and Monster, obtained court approval to exit liquidation by paying lenders and other creditors less than 10% of owed sums. Noteholders and lenders owed nearly $363 million will split about $33.6 million raised from the sale of affiliated businesses. Up to $3 million is allocated to other unsecured creditors. CareerBuilder and Monster failed within a year of merging due to slowed corporate hiring and competition from AI-driven hiring tools and other job sites. The asset sale raised $67 million, and Bold purchased the job board businesses to carry on the brands.
Read at www.mercurynews.com
Unable to calculate read time
Collection
[
|
...
]