Katerra Receives $200M SoftBank Lifeline to Avoid Bankruptcy

According to a report published in The Wall Street Journal, SoftBank Group is providing a $200 million investment to support Katerra, a company aiming to revolutionize the construction sector through a fully integrated business model.

Shareholders of Katerra apparently authorized the new funding on Wednesday, supplementing the approximately $2 billion already invested in the company by the Japanese technology firm, SoftBank.

The financial rescue, which will prevent Katerra from facing bankruptcy, will be sourced from SoftBank’s Vision Fund 1, as communicated by Katerra’s CEO, Paal Kibsgaard, to the company’s investors, the Journal reports.

The Journal also indicates that as a condition of this funding, Greensill Capital, a financial services company backed by SoftBank, is forgiving approximately $435 million in debt in return for a 5% ownership position within Katerra.

This latest investment represents the second instance this year of SoftBank providing a $200 million bailout to Katerra.

Previously, in May, SoftBank injected $200 million into the company when Paal Kibsgaard, formerly the leader of Schlumberger, an oil services company, joined to address the organization’s financial challenges, as detailed in the Journal’s coverage.