OneWeb Global receives confirmation of plan of reorganization

By Sarah Lizee

Olympia, Wash., Oct. 2 – OneWeb Global Ltd. received confirmation of its third amended joint plan of reorganization, according to an order filed Friday with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, the company entered into an agreement under which its Chapter 11 plan sponsor will acquire the newly issued common stock of the reorganized company. OneWeb selected BidCo 100 Ltd. as the successful bidder to acquire the newly issued common stock through a Chapter 11 plan of reorganization.

BidCo is a private limited company organized under the Laws of England and Wales that will be capitalized by Bharti Global Ltd. and the United Kingdom Secretary of State for Business, Energy and Industrial Strategy.

Under the plan sponsorship agreement, BidCo will deliver $100 million in cash and equity interests worth $100 million.

The cash consideration will be used to pay allowed debtor-in-possession financing claims, as well as other claims to be satisfied in cash. The equity consideration will be issued to the holders of secured notes claims, including Softbank Group Corp.; Banco Azteca, SA; Institucion de Banca Multiple; Airbus Group Proj BV; Qualcomm Technologies, Inc. and the Government of the Republic of Rwanda.

On and following the plan effective date, the sponsor will provide up to $850 million of funding, less the amount of the interim funding, to fund all cure costs associated with assumed executory contracts, up to $25.9 million of administrative claims, priority tax claims, priority non-tax claims and other secured claims required to receive cash payments and the reorganized company’s business going forward.

The sponsor will also contribute $3 million toward a wind-down budget.

Holders of general unsecured claims will receive treatment to be determined by the sponsor.

Existing OneWeb interests will be canceled and holders will receive no distribution.

Arlington, Va.-based OneWeb develops a constellation of satellites to enable internet access. The company filed bankruptcy on March 27, 2020 under Chapter 11 case number 20-22437.

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