Days after its third successful satellite launch, OneWeb and certain of its controlled affiliates have voluntarily filed for relief under Chapter 11 of the Bankruptcy Code in the US Bankruptcy Court for the Southern District of New York.
Since the beginning of the year, OneWeb had been engaged in advanced negotiations regarding investment that would fully fund the Company through its deployment and commercial launch. While the Company was close to obtaining financing, the process did not progress because of the financial impact and market turbulence related to the spread of COVID-19.
According to the filing, the company has filed a number of customary motions with the US Bankruptcy Court seeking authorisation to support its ongoing operations during the Chapter 11 process, including approval for the consensual use of its existing cash collateral to continue to fund the business. It will also use financing to help it secure a sale of the business.
Adrian Steckel, Chief Executive Officer of OneWeb, stated: “OneWeb has been building a truly global communications network to provide high-speed low latency broadband everywhere. Our current situation is a consequence of the economic impact of the COVID-19 crisis. We remain convinced of the social and economic value of our mission to connect everyone everywhere. Today is a difficult day for us at OneWeb. So many people have dedicated so much energy, effort, and passion to this company and our mission. Our hope is that this process will allow us to carve a path forward that leads to the completion of our mission, building on the years of effort and the billions of invested capital. It is with a very heavy heart that we have been forced to reduce our workforce and enter the Chapter 11 process while the Company’s remaining employees are focused on responsibly managing our nascent constellation and working with the Court and investors.”
OneWeb Satellites, the joint venture between Airbus and OneWeb remains operational and unaffected by the bankruptcy proceedings. The partnership with Airbus, offers to market a standardised platform and payload interface that can be compatible with many different payloads.
