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The Katerra Group companies
The Katerra Group companies
The Katerra Group was a group of construction companies (and companies providing related products and services) founded in 2015. Katerra Cayman was the parent company of the group. The founder of the Katerra Group was Michael Marks. Mr Marks acted as CEO of the Katerra Group until about May 2020, when he was replaced by Mr Paal Kibsgaard.
Katerra Inc. (incorporated in Delaware) (“Katerra Delaware”) was the intermediate holding company and parent of the Katerra Group companies in North America. Katerra Delaware was the parent of a group of companies known under the securitisation arrangements as “the Katerra Sellers”.
On 6 June 2021 Katerra Cayman, Katerra Delaware and 31 affiliate companies (including the Katerra Sellers) filed for bankruptcy protection under Chapter 11 of Title 11 of the US Code in the Bankruptcy Court for the Southern District of Texas.
- Heading
- INTRODUCTION
- The claimants
- The defendants
- The Greensill Group and supply chain funding
- The SCF Funds
- The securitised funding arrangements
- The SoftBank Defendants’ relationships with the Greensill Group
- The Credit Enhancement Programme
- The Katerra Group companies
- The SoftBank Defendants’ investments in the Katerra Group companies
- 2019 discussions about revisions to the Credit Enhancement Programme
- The Fairymead Note Programme
- December 2019: further discussions about the CEP
- The issue of notes under the Fairymead Note Programme
- 2020: Financial stress in the Katerra Group
- SVF1 invested further in Katerra
- Katerra identified improper revenue recognition
- Appointment of new management and restructuring advisors
- Developments concerning the Greensill Group in 2020
- CSAM reduced concentration limits on Greensill Group investments
- GCPL planned a capital raise and Initial Public Offering
- Drafts of the $440 million CLN and the Omnibus Deed
- The 10 November 2020 agreements
- The $440m CLN
- The Omnibus Deed
- The SBIA Undertaking
- Use of the $440 million proceeds of the CLN
- Further developments in November 2020 concerning the Katerra Group
- SVF1’s bridge loan to the Katerra Group
- SVF1’s, SVF2’s and the Greensill Group’s approvals following the withdrawal of the New Money Consortium
- Documenting the agreements
- Signing of the CEA and TA and placing them in escrow
- Further agreements executed in December 2020
- The CEA
- The TA
- Further investments in Katerra Cayman by SVF1
- The Preferred Share Purchase Agreement
- The SVF Habitat Share Subscription
- The Vision Funds’ stake in the Katerra Group
- November to December 2020: developments concerning the Fairymead Note Programme
- December 2020 – March 2021: Financial position of the Greensill Group
- Discussions between Greensill and CSAM in December 2020 about exposure limits
- The 31 Dec/14 Jan Fairymead Trade – “the Secondary Trade”
- Publicity about the restructuring of the Katerra Group’s debts
- The cancellation of the Secondary Trade
- March – June 2021: Default on the Fairymead Notes and bankruptcy of the Greensill Group and Katerra Group
- WITNESSES
- FINDINGS ON CONTESTED FACTUAL AND EXPERT ISSUES
- SECTION 423 OF THE INSOLVENCY ACT 1986
- DETERMINATION OF THE ELEMENTS OF THE CLAIM
- Conclusions