Construction tech company Katerra files for bankruptcy
Katerra voluntarily filed a claim for relief under Chapter 11 of the US Bankruptcy Code with the United States Bankruptcy Court for the Southern District of Texas.
The construction technology company has secured $ 35 million debtor in possession (DIP) financing commitments from SB Investment Advisers (UK) Limited to fund operations during the Chapter 11 process.
“While a number of negative factors have led to Katerra’s current challenges, we are implementing initiatives on multiple fronts to maximize value and provide the best way forward for Katerra and her many stakeholders,” said Marc Liebman, Katerra’s transformation director.
“Our multi-phased action plan has evolved rapidly and includes consolidating operations in the United States, continuing our international operations, advancing sales of key assets, securing DIP funding and initiating ‘a process of judicial restructuring. We are grateful for the continued extraordinary work and support of the Katerra team and other key interest groups during this extremely difficult time. “
Katerra recently informed her key stakeholders that many of her US projects will be demobilized. In keeping with Katerra’s continued commitment to site and public safety, the company strives to ensure a safe transition.
The rapid deterioration in the company’s financial position is the result of the macroeconomic effects of the COVID-19 pandemic on the construction industry, the inability to secure a bond for construction projects as a result of the unexpected insolvency proceedings of Katerra’s former lender and unsuccessful attempts to obtain additional capital and business.
Katerra acquired Vancouver-based Equilibrium Consulting Inc and Michael Green Architecture in 2018.
In a statement, MGA said, “We are sad for the many people affected by this decision. However, we are grateful that these actions have no impact on our operations, other than the return of MGA actions under our control. We are fortunate to have been isolated from Katerra’s challenges, as directors Michael Green and Natalie Telewiak have been and remain the controlling directors of the company.