Font Size
Share this article

Print Friendly Version
27 March 2020

Saudi-backed SoftBank’s OneWeb files for bankruptcy after cash crunch

The company had been mulling a Chapter 11 filing even as it continued to review possible out-of-court alternatives

Adrian Steckel, the Chief Executive Officer of OneWeb Satellites

by Bloomberg

Satellite operator OneWeb has filed for bankruptcy, becoming one of the first companies backed by SoftBank Group to seek court protection from its creditors after high costs and stiff competition led to a cash crunch.

The company listed liabilities and assets of more than $1 billion each in its Chapter 11 petition in the US Bankruptcy Court in White Plains, New York.

In a statement, OneWeb said that it had been in advanced discussions earlier in the year for a fresh investment, but the discussions fell apart after the coronavirus pandemic sent markets into turmoil.

The satellite operator said it will pursue a sale process during the court reorganization and is in talks for so-called debtor-in-possession financing that would allow the company to fund its obligations during the proceedings.

OneWeb makes low-orbit satellites that provide high-speed communications. The company raised about $3.3 billion in debt and equity financing from shareholders including SoftBank, Airbus and Qualcomm since its inception.

The firm faces high-profile competition, including from Elon Musk’s SpaceX Starlink project and Jeff Bezos’s Amazon-linked Project Kuiper effort, while incumbents in the space include Inmarsat, Intelsat and Eutelsat Communications.

At the time of its filing, the company owed $238 million to Arianespace, the Paris-based world’s first commercial space transportation company and OneWeb satellite launch operator.


RELATED STORIES: Intelsat Inmarsat Project Kuiper SpaceX Starlink SoftBank OneWeb Eutelsat Communications





CPI Financial was established in Dubai in 1999 to meet the needs of an ever-expanding financial community, offering a comprehensive portfolio of market-leading products and services tailor-made for the banking and financial services sectors.

Subscribe to our News Letter


© 2019 CPI Financial. All rights reserved.

No part of this website may be reproduced or used in any form of advertising without prior permission in writing from the editor.