Ammon News -

Construction startup Katerra Inc, which is backed by SoftBank Group Corp, said on Sunday it has filed for bankruptcy protection in the United States.

Katerra said it had secured commitments for $35 million in debtor-in-possession (DIP) financing from SB Investment Advisers (UK) Limited to fund operations during the Chapter 11 process, adding that the company’s international operations are not affected by this filing.

The company had estimated liabilities of $1 billion to $10 billion and assets of $500 million to $1 billion, according to the court filing made in the United States Bankruptcy Court for the Southern District of Texas.

The Information news website reported earlier this month that Katerra had told employees it planned to shut down, marking the collapse of the SoftBank-backed company that had raised more than $2 billion to slash the cost of building apartments.

Katerra said on Sunday that many of its US projects will be demobilizing.

The company has also entered into commitments for the sale of the Renovations and Lord Aeck Sargent architecture business lines to private buyers, it said in a statement.

*Reuters