OneWeb bags more debtor-in-possession funding amidst an on-going bankruptcy restructuring

Space equipment manufacturers and operators require considerable investments in developing their space technologies. These companies own multi-billion-dollar space assets that demand funding to maintain and improve, making it challenging to conduct space activities without funding. The innovation of digital solutions for space launch missions spearheads the revolutionary technologies to resolve challenges in space exploration missions. Usually, the space companies raise funds from public investment rounds that sell company shares to investors looking to inject capital into the company’s operations to develop and deploy space missions. 

Other organizations seek funding from state government-owned space agencies such as NASA through partnerships and bilateral or multilateral agreements. The collaborations help in resource sharing; for example, NASA grants space cooperation access to their state-of-the-art space technologies and a database of information needed in developing modern space assets. The United States Space Force oversees all NASA operations, including funding and certification of satellites, spacecraft, and launch vehicles used in space missions. 

OneWeb is a satellite manufacturer that recently secured interim funding of $235 million to enable it to resume operations. The additional financing goes into deploying the company’s constellation of satellites that await approval and certification before the British administration and the Bharti Global purchase the satellites. Most satellite projects at OneWeb halted operation due to inadequate funding to deliver the satellites to their partners in the company’s space program. 

An on-going bankruptcy restructuring worsened OneWeb’s funding crisis, pushing the company to take drastic measures to salvage it from running out of business. On September 23, a judge presiding over the country’s federal bankruptcy court endorsed a motion that granted OneWeb the access to $235 million in a debtor-in-possession funding agreement. The DIP financing helps the company resume production and development of satellites scheduled for inauguration in upcoming space launch missions. According to the court document, the agreement plans to release the funds in six separate tranches of between $15 million and $65 million up to December. 

In March, OneWeb petitioned for bankruptcy restructuring according to Chapter 11 to arrange for a DIP funding request for $140 million. The court filing saved the company’s assets from liquidation after OneWeb failed to deliver its partners’ satellite shipment. The company’s customers wanted to sell off the assets to cater to their original investments in OneWeb’s space satellite projects. 

Luckily, the filing enabled the organization to continue deploying the satellites for the venture partnership between Airbus and OneWeb. This joint venture controls a satellite manufacturing plant in Florida, built to deploy OneWeb’s cluster of more than 650 broadband satellites for internet communications. In conclusion, the next-big-thing for OneWeb’s bankruptcy restructuring is the confirmation hearing from the federal court, scheduled for a session on October 2. The court hearing will determine the fate of the company’s operations.