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Construction firm Katerra Inc. had bragged of “breaking new ground in the building industry,” but its recent bankruptcy filing in the Southern District of Texas was a more recognizable collection of issues. Potential over extension, pandemic-driven problems, questions about accounting procedures, and then tumbling support by wary investors complicated business as usual for the six-year-old company with nearly $3 billion invested in the startup.

Its largest investor is the Softbank Vision Fund, which three months ago saw another major bankruptcy in its portfolio: Greensill Capital, which fell apart in March 2021 amid questions about accounting practices, according to the New York Times. SVF had invested about $1.4 billion of the total Katerra financing according to court records. Katerra did not respond to a request for information or an interview before publication, but it would be unusual for a company to discuss an ongoing case.


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