Construction firm Katerra Inc. filed for bankruptcy protection in the U.S. This should help answer up the question of how and when those stalled projects from coast to coast can be restarted.
The company filed Chapter 11 proceedings in the Southern District of Texas court. It estimated liabilities of $1 billion to $10 billion and assets of $500 million to $1 billion. The company said in a separate statement it has secured $35 million of debtor-in-possession financing from an arm of SoftBank, a lifeline to tide it over.
The collapse of Katerra -- founded in 2015 with a promise to shake up a staid construction industry -- is a stinging defeat for SoftBank, which made a large bet on its transformative potential. Major cash infusions from SoftBank and others helped Katerra grow quickly, in part by acquiring smaller companies. But integrating those businesses proved difficult, and the company was forced to deal with building delays and issues in trying to perfect its construction modules.
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Gary Fleisher is the Managing Director and contributor to the Modcoach Network and its affiliated blogs. Email at firstname.lastname@example.org
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