OneWeb announced that the company has filed for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York. According to the statement, the company intends to use these proceedings to pursue a sale of its business in order to maximize the value of the company.
Economic impact of the COVID-19 crisis
OneWeb stated that since the beginning of 2020, the company engaged in advanced negotiations regarding the 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.
Adrian Steckel, Chief Executive Officer of OneWeb said,
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“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.”