OneWeb to file for bankruptcy, sources say
WASHINGTON —
Satellite internet startup OneWeb
is expected to file for Chapter 11 bankruptcy as soon as Friday after its largest investor, Softbank, rejected a request for additional funding, according to sources familiar with the situation.
OneWeb’s imminent filing was first reported by The Financial Times.
Softbank, having already invested roughly $2 billion in OneWeb,
decided it was the “responsible decision” not to invest further given the startup’s high cash needs, compounded by the global financial instability caused by the coronavirus, one source said.
OneWeb, which has been aiming to launch at least 648 satellites to deliver global broadband connectivity,
has 74 satellites in orbit following a March 21 launch that put up 34.
The U.K.-based company has raised $3.4 billion, but outside analysts estimated the satellite system would require as much as $7.5 billion to complete.
SpaceNews.com
https://spacenews.com/oneweb-to-file-for-bankruptcy-sources-say/