OneWeb’s biggest dream of satellite internet access has been grossly disappointed. The startup company has filed for Chapter 11 bankruptcy after several moves to get financial assistance failed.
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OneWeb revealed that it was on the verge of getting the desired support, but the coronavirus outbreak produced a “financial impact and market turbulence” that cut off the deal which was already in process.
The company said it has however filed for Chapter 11 bankruptcy which will let it use debtor-in-possession proceeds to sell the business and keep its existing work floating.
The company also alluded to job cuts with references to “remaining employees,” but didn’t say how many people will lose their jobs.
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This is not the end of the road for OneWeb as Chapter 11 bankruptcy is usually used to regroup and get a second chance at life. That said, the company clearly in a much more fragile position than it was even a few weeks ago.
OneWeb has launched 74 satellites so far, but it’s not certain how many more will be available if the company doesn’t find a buyer as quickly as it should to get things going.