Katerra’s plan accepted by class of general unsecured creditors

By Sarah Lizee

Olympia, Wash., Oct. 18 – Katerra, Inc.’s Chapter 11 plan was accepted by the class of general unsecured creditors, according to a tabulation summary filed Friday with the U.S. Bankruptcy Court for the Southern District of Texas.

Specifically, 252 holders, or 85.71% in number, of $1.96 billion, or 80.06% in amount, of holders voted to accept the plan, while 42 holders, or 14.29% in number, of $488.97 million, or 19.94% in amount, voted to reject the plan.

A combined hearing on final approval of the disclosure statement and confirmation of the plan is scheduled for Oct. 21.

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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