Mass timber and construction services company Katerra has filed for bankruptcy, according to a news release issued by the company. The company filed for relief under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court of the Southern District of Texas and Katerra reported it has secured commitments for $35 million in debtor-in-possession financing from SB Investment Advisers Limited to fund operations during the Chapter 11 process.
Katerra said the “rapid deterioration of the company’s financial position” is the result of the macroeconomic effects of the COVID-19 pandemic on the construction industry, the inability to procure bonding for construction projects following “the unexpected insolvency proceedings of Katerra’s former lender,” and unsuccessful attempts to secure additional capital and business.
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