SoftBank Throws Final Cash Infusion to Bankrupt Startup Katerra

After pouring more than $2.1 billion into now-busted Katerra Inc., SoftBank Group Corp. is giving the construction startup one final cash infusion.

SoftBank is offering Katerra a $35 million loan to fund its operations in bankruptcy. In exchange for the so-called debtor-in-possession loan -- also called DIP financing -- Katerra will try to sell its assets in the next 60 days.

SoftBank is the majority owner of Katerra, which was founded in 2015. Stockholders usually see no recovery in U.S. bankruptcy because all creditors rank ahead of equity in the repayment line.

“We are very much a reluctant ...