OneWeb files for Chapter 11 bankruptcy protection

Joanna Estrada
March 30, 2020

The satellite tv for pc television for computer operator estimated property inside the differ of $1 billion to $10 billion and liabilities within the similar differ, in accordance with a submitting inside the U.S. Bankruptcy Courtroom docket for the Southern District of NY.

In a press release, OneWeb stated it intends to utilize the bankruptcy procedures to go after a sale of the business. OneWeb says its commercial team has seen significant early global demand from automotive, maritime, enterprise, and aviation industries.

The company had been mulling a Chapter 11 filing even as it continued to review possible out-of-court alternatives, people with knowledge of the matter told Bloomberg News on March 19.

OneWeb is in negotiations for debtor-in-possession financing, which if acquired and approved by the court will support its ongoing business, the company said in a statement that did not mention how many jobs were being cut. But these plans "do not progress because of the economic impact and market turbulence associated with the spread of COVID-19", the statement states. "Together, these actions will allow OneWeb to. meet post-petition obligations to its remaining employees and certain vendors in the ordinary course", the company said.

"Our current situation is a effect of the economic impact of the Covid-19 crisis", OneWeb CEO Adrian Steckel said. We remain convinced of the social and economic value of our mission to connect everyone everywhere.

While the statement does not directly point at any particular investor that turned its back on the satellite internet provider, earlier reports said its largest backer, Softbank, which had already invested $2 billion in the company, refused to provide more capital.

In a statement, OneWeb CEO Adrian Steckel said that today was "a hard day". So many individuals have devoted a lot vitality, effort, and keenness to this firm and our mission.

Additional information about the Company's Chapter 11 cases can be found at http://www.omniagentsolutions.com/onewebglobal, or by calling the Company's claims agent at 1-866-680-8121.

OneWeb, started in 2012 as WorldVu Satellites, had been seeking to construct a constellation of broadband internet satellites that might operate in low Earth orbit, offering low-cost connections to clients on the ground with coverage that extends into more distant and hard-to-reach locations that aren't addressed by current ground-based networks. OneWeb has business solutions for broadband, government and cellular backhaul.

Other reports by Click Lancashire

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