FTI Consulting is serving as restructuring advisor and Guggenheim Securities is serving as financial advisor to OneWeb, which voluntarily filed for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York.
OneWeb intends to use these proceedings to pursue a sale of its business in order to maximize the value of the company. The company 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 allow OneWeb 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.
“OneWeb has been building a truly global communications network to provide high-speed low latency broadband everywhere,” Adrian Steckel, CEO of OneWeb, said. “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.”
OneWeb has a constellation of low earth orbit satellites with a network of global gateway stations and a range of user terminals to provide communications service for businesses and governments.
