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Daily Mail and General places struggling, US property information business into Chapter 7 liquidation

The media group announced that, following completion of that strategic review, the board of Xceligent has decided to file for Chapter 7 liquidation

Daily Mail newspaper
Last month DMGT said it had launched a strategic review of Xceligent which followed a reduction in the carrying value of the US business to zero

Daily Mail and General Trust PLC (LON:DMGT), publisher of the Daily Mail newspaper, has placed its struggling US property information business, Xceligent into liquidation.

Last month DMGT said it had launched a strategic review of Xceligent which followed a reduction in the carrying value of the US business to zero.

READ: DMGT slumps as it warns of further declines in newspaper advertising after 2017 loss

The media group has now announced that, following completion of that strategic review, the board of Xceligent has decided to file for Chapter 7 liquidation.

It added: “Under US law, a Chapter 7 trustee with expertise in liquidating companies will be appointed to distribute Xceligent's assets under well-established statutory law and a federal judge with financial expertise will oversee the proceedings in a public forum.”

DMGT said it holds no liability for any future costs associated with the litigation and its financial guidance issued for full year 2018 on November 30 remains unchanged.

It said the adjusted operating margin of DMGT's B2B portfolio of businesses was still expected to be in the mid-teens, including Xceligent's closure costs, and further exceptional cash costs relating to Xceligent were not anticipated.

In late afternoon trading, DMGT shares were trading 1.6%, or 9.5p lower at 602.5p.

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