With talks for additional funding from primary backer Softbank unsuccessful, internet-via-satellite contender OneWeb moved a step close to filing for Chapter 11 bankruptcy protection in the U.S., the London-based Financial Times reported on March 27.
Last week, OneWeb said it had been impacted by the global health and economic crisis wrought by the COVID-19 pandemic and needed to “dynamically adjust our workforce.”
“Unfortunately, we think it is inevitable that there will be delays to our launch schedule and satellite manufacturing due to increasing travel restrictions and the disruption of supply chains globally. Therefore, we made the difficult decision to eliminate some roles and responsibilities as we work to focus on core operations,” OneWeb said in a statement.
“We are sorry to have had to take this step and we’re doing everything we can to support those affected,” OneWeb said.
The layoffs also impacted its affiliated manufacturing company, OneWeb Satellites, a joint-venture of OneWeb and Airbus.
This week, however, OneWeb’s financial difficulties apparently took a turn for the worse. “As markets plunged, OneWeb and SoftBank could not agree terms for a potential bridge loan,” the Financial Times reported.
OneWeb declined to comment.
The company has 74 satellites of a planned 648-member network already in orbit. Before the pandemic, OneWeb was aiming for monthly launch campaigns through 2021 to build up its initial constellation.
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