SoftBank-backed OneWeb cuts jobs and files for Chapter 11 bankruptcy

The satellite operator is looking to sell its business amid the coronavirus outbreak

A Soyuz-2.1b launch vehicle takes-off with another 34 OneWeb satellites from the Baikonur Cosmodrome in Kazakhstan on March 21, 2020. Roscosmos Space Agency via AP

OneWeb, the satellite operator backed by Japan’s SoftBank Group, said it has filed for Chapter 11 bankruptcy to pursue sale of its business and has cut its workforce amid the coronavirus outbreak.

OneWeb is in negotiations for debtor-in-possession financing, which if acquired and approved by the court will support its ongoing business, the company said in a statement that did not mention how many jobs were being cut.

The company also said it had been in talks for funding since the beginning of the year but the process had stalled due to the financial impact of the Covid-19 pandemic.

“Our current situation is a consequence of the economic impact of the Covid-19 crisis,” chief executive Adrian Steckel said.

The satellite operator estimated assets in the range of $1 billion (Dh3.67bn) to $10bn and liabilities in the same range, according to a filing in the US Bankruptcy Court for the Southern District of New York.

The company has launched 74 satellites including 34 from the Baikonur cosmodrome in Kazakhstan in early February to provide high-speed internet access using satellite communications.