On June 6, Katerra announced that the company and some of its affiliates in the US and on the Cayman Islands had voluntarily filed for protection under Chapter 11 of the US Bankruptcy Code at the United States Bankruptcy Court for the Southern District of Texas.
Katerra is also going to receive $35 million of debtor-in-possession (DIP) financing from SB Investment Advisers (UK) Limited to fund business operations during the Chapter 11 restructuring process.
“Our multi-step action plan has rapidly evolved and includes consolidating US activities, continuing our international businesses, advancing key asset sales, securing debtor-in-possession financing, and commencing an in-court restructuring process,” said Marc Liebman, Katerra’s chief transformation officer.
Chapter 11, DIP
Chapter 11 is a reorganization or restructuring process for US companies. It is named after one of the chapters of the United States Bankruptcy Code which regulates this process.
DIP: According to US bankruptcy law, a debtor in possession is a person or a corporation that has filed for Chapter 11 bankruptcy protection but still holds property to which creditors have a legal claim under a lien or a security interest.
