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July 22, 2022, US Bankruptcy Court for Southern District of Texas – Daniel R. Williams, the Plan Administrator for Katerra, Inc. (the “Debtor”) brings an adversary proceeding against Solaria Corporation (the “Defendant”) to recover money and property allegedly belonging to the bankruptcy estate of Katerra Inc.
By background, Katerra Inc. and Solaria Corp. entered into a Master Supply Agreement whereunder Katerra Inc. advanced $3,000,000 to Solaria Corp. Later, Solaria Corp. issued some shares of its common stock in favor of Katerra, Inc. and also provided certain products to Katerra, bringing down the owed balance to $1,050,000.
In 2021, Katerra, Inc. and Solaria Corp. entered into a settlement agreement under which Solaria Corp. agreed to pay Katerra Inc. a total of $1,050,000 by making a series of monthly payments to Katerra, Inc. Defendant Solaria Corp. allegedly paid only two installments leaving the remainder of $777,000 unpaid and outstanding.
After Katerra, Inc. filed for bankruptcy in June 2021, the Plan Administrator makes demands on Solaria Corp. for the immediate payment of $840,000. The Plan Administrator alleges that Defendant Solaria Corp. has allegedly breached its obligations under the settlement agreement, failing to make timely payments to Katerra Inc. of the amounts due. The complaint pleads for compensatory damages for breach of the settlement agreement.
The complaint requests for a court order mandating Solaria Corp. to immediately turnover the funds due and owing under the settlement agreement in an amount to be proven at trial.
Daniel R. Williams v. Solaria Corporation (In re Katerra, Inc.), AP No. 22-03234, US Bankruptcy Court for Southern District of Texas.
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