OneWeb, the London-primarily based undertaking that released its most recent batch of broadband world-wide-web satellites last weekend, filed for Chapter 11 bankruptcy protection in New York nowadays.

“The enterprise intends to use these proceedings to pursue a sale of its business in order to maximize the benefit of the company,” OneWeb claimed in a information release.

OneWeb has 74 satellites in minimal Earth orbit, and 50 % of its 44 planned floor stations have been completed or are in progress. It was preparing to start off providing broadband internet obtain in the Arctic as before long as this year, and broaden its service to the entire world with hundreds of satellites above the subsequent 12 months or so. All people plans are now up in the air.

Speaking on issue of anonymity, a supply who’s familiar with the condition instructed Communitythat OneWeb was not ready to organize even more money aid from SoftBank Group, a person of its largest backers. The supply said substantial quantities of staff have been laid off now, but did not give the figures.

In its information release, OneWeb verified that it was dealing with a economic squeeze, mostly owing to consequences of the international coronavirus outbreak. “While the enterprise was near to acquiring funding, the course of action did not development simply because of the monetary effect and sector turbulence similar to the distribute of COVID-19,” it stated.

The petition filed in Southern New York Personal bankruptcy Court lists the company’s 30 largest lenders. The major creditor on the record is Arianespace, with an unsecured assert of extra than $238 million. There is also a Seattle-location enterprise amid the creditors: Woodinville, Wash.-primarily based Redapt, which has a declare of $662,275.85.

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OneWeb reported it is asking the court for authorization to continue functions through the Chapter 11 process, applying its present money collateral. It also said it is in negotiations for “debtor-in-possession funding.” If the court docket approves these an arrangement, OneWeb could fund supplemental economical commitments as it goes by the sale approach. “Together, these actions will allow for OneWeb to. satisfy post-petition obligations to its remaining workers and specific vendors in the standard program,” the organization claimed.

In a statement, OneWeb CEO Adrian Steckel stated that now was “a challenging day.”

“So quite a few persons have devoted so considerably vitality, hard work and passion to this firm and our mission,” Steckel explained. “Our hope is that this procedure will enable us to carve a path ahead that sales opportunities to the completion of our mission, setting up on the several years of effort and the billions of invested capital.”

OneWeb’s financial setback boosts the position of SpaceX’s Starlink constellation as the front-runner in a competitiveness to beam extra ubiquitous broadband to underserved markets (and the U.S. army) from minimal Earth orbit.

Starlink satellites are developed at SpaceX’s amenities in Redmond, Clean., not far from exactly where Amazon’s Project Kuiper is laying the groundwork for still yet another broadband satellite constellation.

Browse the petition filed in Southern New York Bankruptcy Court.