OneWeb, the satellite internet start-up backed by Japan’s SoftBank Group, is filing for Chapter 11 bankruptcy. The company has since its inception launched 74 satellites and has 44 ground station to power its communication service using low earth orbit satellites.
In their statement the company said that the Company and certain of its controlled affiliates have voluntarily filed for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York. The company has also cut its workforce as an outcome of financial pressures, as well as considering the coronavirus outbreak.
OneWeb had been engaged in advanced negotiations regarding investment to support the company through its deployment and commercial launch, and while they had been close to obtaining financing, the process did not progress because of the financial impact and market turbulence related to the spread of COVID-19.
In the company’s statement, Adrian Steckel, CEO, OneWeb, said, “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.”
Earlier this month, on March 21st at 17:06 UTC, the company had launched 34 satellites, aboard a Soyuz launch vehicle from the historic Baikonur Cosmodrome, Kazakhstan. This was second of its 34 satellite launches in six weeks. The company is understood to have raised over $ 3.5 billion, with over $ 2 billion from Softbank Group.
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