SoftBank-backed Katerra files for bankruptcy in the US
ECONOMY & POLICY

SoftBank-backed Katerra files for bankruptcy in the US

Construction firm Katerra Inc filed for bankruptcy security in the US, bookending the collapse of a startup that raised about $2 billion from investors, including SoftBank Group Corp.

The company registered Chapter 11 proceedings in the Southern District of Texas Court. It calculated liabilities of $1 billion to $10 billion and assets of $500 million to $1 billion.

The firm informed the media it acquired $35 million of the debtor-in-possession funding from a branch of SoftBank, a line to tide it over.

Katerra, founded in 2015 with a commitment to move up the steady construction industry, is a setback for SoftBank, which made a large bet on its transformative potential.

High cash flow from SoftBank and others helped Katerra to grow speedily by acquiring small companies. However, integrating those companies was challenging, and the firm had to deal with construction delays and problems in trying to make its construction modules better.

In May, Masayoshi Son, SoftBank founder, stated Katerra with investments where it made errors, including WeWork and Greensill. But they argued that SoftBank's successes have more than built up for such missteps.

According to the media, Credit Suisse Group is preparing to sue SoftBank over the collapse of Greensill and around $440 million reserves that Katerra owes the bank's clients, indicating unidentified people familiar with plans.

Katerra stands beside WeWork as one of the more striking collapses in SoftBank's portfolio. Katerra promised to shake up the construction industry sector with efficient factories and modular construction units. The firm said it was working in countries like the US, India, and Saudi Arabia.

Last year in February, its marketing materials touted 8,000 employees over the globe. It also closed down a factory in Phoenix to focus on a more extremely automated facility in California.

Ankur Gupta, President Katerra India said “Our construction, design, and factories continue doing business as usual. We remain committed to the completion of all ongoing projects and we are actively seeking new projects. Our customers and vendors should know that we remain steadfast in our business and in our commitment to them. We look forward to a long and fruitful relationship with our customers and vendors.”

Image Source


Also read: Lenders of Lavasa cancel bankruptcy proceedings to invite fresh bids

Also read: NBCC gets Rs 2,000 cr credit line from HUDCO for Jaypee acquisition

Redefine the future of urban mobility! Join us at the Metro Rail Conference 2025 to explore groundbreaking ideas and insights. 👉 Register today!

Construction firm Katerra Inc filed for bankruptcy security in the US, bookending the collapse of a startup that raised about $2 billion from investors, including SoftBank Group Corp. The company registered Chapter 11 proceedings in the Southern District of Texas Court. It calculated liabilities of $1 billion to $10 billion and assets of $500 million to $1 billion. The firm informed the media it acquired $35 million of the debtor-in-possession funding from a branch of SoftBank, a line to tide it over. Katerra, founded in 2015 with a commitment to move up the steady construction industry, is a setback for SoftBank, which made a large bet on its transformative potential. High cash flow from SoftBank and others helped Katerra to grow speedily by acquiring small companies. However, integrating those companies was challenging, and the firm had to deal with construction delays and problems in trying to make its construction modules better. In May, Masayoshi Son, SoftBank founder, stated Katerra with investments where it made errors, including WeWork and Greensill. But they argued that SoftBank's successes have more than built up for such missteps. According to the media, Credit Suisse Group is preparing to sue SoftBank over the collapse of Greensill and around $440 million reserves that Katerra owes the bank's clients, indicating unidentified people familiar with plans. Katerra stands beside WeWork as one of the more striking collapses in SoftBank's portfolio. Katerra promised to shake up the construction industry sector with efficient factories and modular construction units. The firm said it was working in countries like the US, India, and Saudi Arabia. Last year in February, its marketing materials touted 8,000 employees over the globe. It also closed down a factory in Phoenix to focus on a more extremely automated facility in California. Ankur Gupta, President Katerra India said “Our construction, design, and factories continue doing business as usual. We remain committed to the completion of all ongoing projects and we are actively seeking new projects. Our customers and vendors should know that we remain steadfast in our business and in our commitment to them. We look forward to a long and fruitful relationship with our customers and vendors.” Image Source Also read: Lenders of Lavasa cancel bankruptcy proceedings to invite fresh bids Also read: NBCC gets Rs 2,000 cr credit line from HUDCO for Jaypee acquisition

Next Story
Real Estate

Maharashtra Builders Must Add Waterproof Telecom Centres In Buildings

The Maharashtra Urban Development Department (UDD) has issued a notice (dated 30 September 2024) inviting suggestions and objections regarding a proposed addendum to the Model Building Bye-Laws 2016, issued by the Ministry of Housing and Urban Affairs (MoHUA). The addendum is set to be incorporated into the Development Control and Promotion Regulations – 2034 for Greater Mumbai. Aimed at enhancing digital connectivity infrastructure in Mumbai and its suburbs, the notice calls on architects, developers, and town planners to provide input on the inclusion of Common Telecommunication Infrastru..

Next Story
Technology

Year-End Review 2024: MeitY’s Digital Leap

In 2024, the Ministry of Electronics and Information Technology (MeitY) spearheaded significant initiatives to advance India's digital growth, with a focus on artificial intelligence (AI), cybersecurity, and skill development. These efforts aimed to democratise technology, foster innovation, and cement India's position as a global technology leader. Semiconductor Manufacturing under the Semicon India Programme Several major projects received approval under the Semicon India Programme, marking a pivotal year for semiconductor manufacturing in India: 1. Tata Electronics Private Limited (TEPL)..

Next Story
Infrastructure Transport

Indian Railways to Roll Out Kavach 4.0 For Safer Rail Operations

Indian Railways is advancing efforts to boost safety and operational efficiency by deploying the state-of-the-art Kavach 4.0 automatic train protection system across key routes. The enhanced system, developed in-house, aims to prevent accidents, minimise human error, and ensure seamless train operations. According to officials, all locomotives equipped with earlier versions of Kavach will be upgraded to Kavach 4.0. The North-East Frontier Railway has identified approximately 1,966 route kilometres, stretching from Malda Town to Dibrugarh, for implementation. This initiative is part of a br..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000