SoftBank-backed Katerra files for bankruptcy in US with billions of debt, Real Estate News, ET RealEstate

SoftBank Backed Katerra Files for Bankruptcy in US with Billions in DebtBENGALURU: Start of construction katterra Inc., which is supported by SoftBank Group Corp, said Sunday it has filed for bankruptcy protection in the United States.

Katerra said it had secured commitments for $35 million in debtor-in-possession (DIP) financing from SB Investment Advisers (UK) Limited to fund operations during its Chapter 11 lawsuit, adding that the company International operations are not affected by this application.

The company had estimated liabilities of $1 billion to $10 billion and assets of $500 million to $1 billion, according to the court filed with the US Bankruptcy Court for the Southern District of Texas.

The information news website reported earlier this month that Katerra had told employees they were planning to shut down, marking the collapse of the SoftBank-backed company that raised more than $2 billion to lower the cost of building apartments.

Katerra said on Sunday that many of its US projects will be demobilized. The firm has also entered into commitments to sell its architectural business Renovations and Lord Aeck Sargent to private buyers, it said in a statement.

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