OneWeb Files for Chapter 11 Restructuring to Execute Sale Pr
LONDON, March 27, 2020 /PRNewswire/ -- OneWeb ("OneWeb," "the Company"), the global communications company with a mission to bring connectivity to everyone everywhere, announced today 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 maximize the value of the company.
To date, the Company has successfully launched 74 satellites as part of its constellation, secured valuable global spectrum, begun development on a range of user terminals for a variety of customer markets, has half of its 44 ground stations completed or in development, and performed successful demonstrations of its system with broadband speeds in excess of 400 Mbps and latency of 32 ms. In addition, OneWeb's commercial team has seen significant early global demand for OneWeb's high-speed, low-latency connectivity services from governments and leaders in the automotive, maritime, enterprise, and aviation industries.
This demand for connectivity delivered from low Earth orbiting satellite constellations underscores the tremendous need for high-quality connectivity, especially for rural and under-connected communities worldwide. The OneWeb ecosystem has transformed the satellite industry introducing innovative new technologies and operational advances. These developments have fundamentally changed the economics of satellite communications, opening up new markets such as cellular backhaul and connectivity on the move.
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.
Today, the Company has filed a number of customary motions with the U.S. Bankruptcy Court seeking authorization to support its ongoing operations during the Chapter 11 process, including approval for the consensual use of its existing cash collateral to continue to fund the business. In addition, OneWeb is actively negotiating debtor-in-possession financing, which, if acquired and approved by the Bankruptcy Court, will ensure OneWeb is able to fund additional financial commitments as it conducts a sale process under Section 363 of the U.S. Bankruptcy Code. Together, these actions will allow OneWeb to meet post-petition obligations to its remaining employees and certain vendors in the ordinary course.
Adrian Steckel, Chief Executive Officer of OneWeb, stated, "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."
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.
Milbank LLP is serving as OneWeb's legal counsel, FTI Consulting is serving as its restructuring advisor, and Guggenheim Securities, LLC is serving as its financial advisor.
OneWeb's vision is to enable Internet access for everyone, everywhere. It is implementing a constellation of Low Earth Orbit satellites with a network of global gateway stations and a range of user terminals to provide an affordable, fast, high-bandwidth and low-latency communications service for businesses and governments around the world. OneWeb has business solutions for broadband, government and cellular backhaul. Its global communications network will offer game-changing mobility solutions to industries that rely on global connectivity, such as aviation, maritime, automotive and more.
OneWeb is dedicated to responsible space practices on the basis that space is a shared natural resource which, if used responsibly, can help transform the way we live, work, and connect.
Find out more at http://www.oneweb.world