OneWeb files for bankruptcy over financial squeeze

UK company OneWeb, which was planning to create a constellation of satellites to provide global internet access, announced that it has filed for bankruptcy in New York after failing to obtain financing amid the coronavirus pandemic.

"OneWeb announced Friday 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 intends to use these proceedings to pursue a sale of its business in order to maximise the value of the company", the statement said.

The company said that although it "was close to obtaining financing", the process had stalled due to the coronavirus outbreak's economic and financial impact.

"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", OneWeb stated.

OneWeb planned to create a constellation of satellites that would provide broadband internet access to users around the world fully covering the Earth's surface.

In June 2015, Russia's Roscosmos signed contracts with OneWeb and French company Arianespace to carry out a total of 21 commercial launches to put 672 satellites into space via Soyuz rockets from the Kourou, Baikonur, and Vostochny spaceports.

Source: RIA Novosti

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