Softbank-backed Katerra’s Bankruptcy Sales of Units Approved

Katerra Inc. won court approval to sell two of its business units out of bankruptcy, a deal that will provide the failed construction startup about $2.6 million in cash and relief from future liabilities and overhead expenses.

The privately negotiated deals, approved Thursday by Judge David Jones of the U.S. Bankruptcy Court for the Southern District of Texas, advance the struggling firm’s goal to quickly sell assets to pay creditors.

An ownership group that operates real estate developer Onx Homes bought Katerra’s renovation business for $1 million in cash and $17 million in assumed liabilities.

Katerra, which is majority-owned by ...