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Katerra, the new U.S. construction company backed by SoftBank’s Vision Fund, went bankrupt with more than a billion dollars, making it the second-largest company to fall into the Japanese conglomerate’s portfolio this year.
In a statement, Katerra said he has asked for protection against creditors because “the company’s economic situation has deteriorated rapidly.” He blamed Covid-19 for the “unexpected failure” of the former Greensill Capital lender and the inability to secure new funding. The company said it will go through the marketing and sales process to “maximize value for its stakeholders”.
The bankruptcy is the latest setback for SoftBank’s Vision Fund, which has recently been a big hit on the list of portfolio companies like Coupang and DoorDash. The Vision Fund invested more than $ 2 billion in Katerra, according to reports, including a cash infusion in December as part of a recapitalization.
Katerra Greensill, a customer of the SoftBank-sponsored supply chain, was a customer of the company, and she herself fell this year. Katerra did not name Greensill in the statement.
Founded in Silicon Valley, Kater raised billions of dollars in an attempt to reduce construction costs instead of making the components in the factory itself.
But the company has struggled to keep costs down and has had delays in several major projects. Internal drama he brought output Founded by Michael Marks in May last year from the role of its CEO.
Katerra said SoftBank has received funding from the $ 35 million debtor, allowing the company to continue to operate while the bankruptcy process is underway, and that international operations will not be affected by bankruptcy. The company estimated it had $ 500 million to $ 1 billion in assets and $ 1 billion to $ 10 billion in liabilities. SoftBank has not commented.
Presentations by Texas state courts showed that Kater earned about $ 1.75 million last year. The company has nearly 2,400 employees, according to Linkedin.
The collapse of the caterpillar has caused tension between SoftBank and Credit Suisse, which sold the funds raised by Greensill.
Credit Suisse is trying to recover about $ 440 million related to the Katerra that was in the funds. The Financial Times reported last week the Swiss bank with SoftBank, against one of its main customers, is preparing potential lawsuits after the fall of Greensill.
In November last year, SoftBank gave Greensill an emergency cash injection to cover its debts to Katerra. However, the money never reached the funds of Credit Suisse, FT reported.
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