While the US commemorated Independence Day last weekend, others have also found reason to celebrate.
Having entered into Chapter 11 Restructuring at the end of March, OneWeb looks set to exit Bankruptcy protection following its impending acquisition by India’s Bharti Global and the UK’s Secretary of State for Business, Energy and Industrial Strategy.
The consortium has committed more than US$1 billion to fund the full restart of its business operations, which, given the contrasting backgrounds and interests of the consortium, may or may not include in-flight connectivity services. If approved, the deal will be completed in Q4 this year.
Low-Earth Orbit (LEO) satellites have received another boost with the confirmed acquisition of Phasor Solutions by South Korea’s Hanwha Systems (HSC).
HSC has acquired the UK company’s engineers, proprietary technology including technical data and IPs (Intellectual Property Rights) as well as tangible assets like test equipment, etc.
The move strengthens HSC’s aerospace system capabilities and brings Phasor Solutions out of UK administration.
However, the future isn’t looking so bright for IFEC service provider Global Eagle, which this week warned of the real threat of bankruptcy.
Global Eagle, like many businesses, has found itself in a perfect storm. A reduction in the number of passengers travelling and therefore demand for its services, a decline in airline contacts, a constriction of liquidity channels and rising debt, has forced the company to confront the real possibility of filing for Chapter 11 Bankruptcy protection.
With ongoing uncertainty over the speed of recovery for the aviation industry, more companies are likely to disappoint their investors and seek protection in administration. But, as we’ve seen, for some the process will be temporary.
