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Deepti Sri · · 1 min readReport: SoftBank-backed construction startup Katerra files for bankruptcy in the US
“Construction startup Katerra, which is backed by SoftBank Group, said on Sunday it has filed for bankruptcy protection in the US,” The Economic Times reported.
Details:
- The company has raised US$35 million in debtor-in-possession financing from SB Investment Advisers (UK) to finance its operations during its bankruptcy process. Katerra’s India arm will be affected by the closure, though its other international operations remain unaffected, the company said.
- Katerra will also sell its Renovations and Lord Aeck Sargent businesses to private buyers. Lord Aeck Sargent, an architectural and design firm that Katerra acquired in 2018, includes museums, arts centers, multifamily housing, and mixed-use projects, among others in its portfolio.
Context:
- According to the court filing made in the US Bankruptcy Court, the company has estimated liabilities of US$1 billion to US$10 billion, along with assets in the range of US$500 million to US$1 billion.
- Earlier in January, SoftBank Group reportedly invested US$200 million to bail out Katerra after it used up a US$2 billion lifeline from the Japanese investment giant.
Editing by Miguel Cordon Jaclyn Tiu
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