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OneWeb Global unsecured creditors committee blasts changes to plan
By Caroline Salls
Pittsburgh, Aug. 28 – OneWeb Global Ltd.’s official committee of unsecured creditors filed a supplemental objection to the disclosure statement for the company’s Chapter 11 plan on Friday, arguing that “last-minute and fundamental” changes “remove any doubt that the debtors are no longer working to advance the interests of their estates, but only to aid the purported noteholders and the directors and officers.”
According to the objection filed with the U.S. Bankruptcy Court for the Southern District of New York, “through the guise of a settlement,” OneWeb has proposed a fundamentally new and flawed plan that reduces the cash consideration to be paid to SoftBank on account of its debtor-in-possession loans by $91 million.
In exchange, the committee said the plan transfers $87.9 million of additional new equity in a new equity company to SoftBank.
As a result, the committee said the $90 million required to be made available to unsecured creditors under the company’s plan support agreement is reduced by $68.1 million “all in a transparent attempt to shield SoftBank from the committee’s challenge.”
In addition, the creditor group said the remaining portion of the available $90 million would all go to Banco Azteca on account of its portion of a roll-up DIP loan.
“In other words, all of the cash is now going entirely to the entity that the court mentioned as potentially being walled off from the committee’s challenge,” the objection said.
Arlington, Va.-based OneWeb develops a constellation of satellites to enable internet access. The company filed bankruptcy on March 27 under Chapter 11 case number 20-22437.
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