OneWeb emerges from bankruptcy with $1 billion new equity investment

By Sarah Lizee

Olympia, Wash., Nov. 20 – OneWeb Global Ltd. has emerged from Chapter 11 bankruptcy with a $1 billion new equity investment from a consortium of the U.K. government and Bharti Global to offer broadband connectivity services via a constellation of 650 LEO satellites, according to a Friday press release.

The company’s newly appointed chief executive officer is Neil Masterson, formerly co-chief operating officer at Thomson Reuters. He succeeds Adrian Steckel, who continues as an adviser to the board.

OneWeb also announced a target date of Dec. 17 for its return to flight, with a 36-satellite payload scheduled for launch by Arianespace from the Vostochny Cosmodrome.

Due to investment decisions made by the new shareholders, the joint venture facility with Airbus in Florida was reactivated and the dual production lines brought back into service.

Launches will continue throughout 2021 and 2022, and OneWeb is now on track to begin commercial connectivity services to the United Kingdom and the Arctic region in late 2021 and will expand to delivering global services in 2022.

As previously reported, the company received confirmation of its third amended joint plan of reorganization on Oct. 2.

OneWeb entered into an agreement under which its Chapter 11 plan sponsor would 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 is capitalized by Bharti Global and the U.K. Secretary of State for Business, Energy and Industrial Strategy.

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

The cash consideration was to be used to pay allowed debtor-in-possession financing claims, as well as other claims to be satisfied in cash. The equity consideration would 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 would 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 would also contribute $3 million toward a wind-down budget.

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

Existing OneWeb interests would be canceled and holders would 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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.