Katerra gets conditional OK of statement; combined hearing Sept. 30

By Sarah Lizee

Olympia, Wash., Aug. 27 – Katerra, Inc.’s received conditional approval of the disclosure statement for its Chapter 11 plan and disclosure statement, according to an order filed Thursday with the U.S. Bankruptcy Court for the Southern District of Texas.

A combined hearing on final approval of the statement and confirmation of the plan is scheduled for Sept. 30.

According to the disclosure statement, the plan contemplates a basic waterfall structure whereby the estate liquidates its assets and all proceeds are distributed to holders of allowed claims.

A plan administrator will be appointed on the effective date to wind down the debtors’ estates, monetize any remaining assets and make distributions to creditors.

Holders of allowed secured claims will receive payment in full in cash, the collateral securing their claims or other treatment leaving their claims unimpaired.

Holders of allowed other priority claims will receive payment in full in cash or other treatment leaving their claims unimpaired.

Holders of allowed general unsecured claims will receive their pro rata share of the general unsecured claims recovery, which is the distributable cash, if any, after all senior classes of claims are paid in full.

Other intercompany claims and intercompany interests will be reinstated, or distributed, contributed, set off, settled, canceled and released, or otherwise addressed without any distribution.

Existing interests and section 510(b) claims will be canceled, released and extinguished, with holders receiving no distribution.

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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