Katerra seeks approval to sell renovation business for $18 million

By Sarah Lizee

Olympia, Wash., June 16 – Katerra, Inc. is seeking court approval of the private sale of its renovation business, according to a motion filed Tuesday with the U.S. Bankruptcy Court for the Southern District of Texas.

The purchaser was not disclosed. However, Katerra said the purchaser employs some of its former senior employees who are familiar with the renovation business.

The total consideration for the acquired assets is about $18 million, comprising $1 million in cash and $17 million or more of assumed liabilities.

The sale will also allow the debtors to avoid about $50 million to $60 million in contractual liabilities that may have been asserted against the debtors in connection with ongoing projects that would have otherwise been rejected by the debtors due to their inability to perform on those contracts.

Katerra is a technology-enabled construction company based in Menlo Park, Calif. The company filed bankruptcy on June 6 under Chapter 11 case number 21-31861.

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