After pouring more than $2.1 billion into now-busted Katerra Inc., SoftBank Group Corp. is giving the construction startup one final cash infusion, Bloomberg News reported. SoftBank is offering Katerra a $35 million loan to fund its operations in bankruptcy. In exchange for the so-called debtor-in-possession loan — also called DIP financing — Katerra will try to sell its assets in the next 60 days. SoftBank is the majority owner of Katerra, which was founded in 2015. Stockholders usually see no recovery in U.S. bankruptcy because all creditors rank ahead of equity in the repayment line. Katerra filed for bankruptcy in the wake of “overly ambitious” acquisitions, cost-control issues and project completion delays, Josh Sussberg of Kirkland & Ellis said on behalf of the company. Katerra never turned a profit and had less than $5 million of unrestricted cash on hand as of Sunday.
