Would-be mega-constellation OneWeb, which is in Chapter 11 bankruptcy organisation, has been granted a 90-day extension of the timetable to produce a formal plan as to how it might exit Chapter 11.
OneWeb is in the process of being acquired by the UK government along with Indian telco Bharti Global who have both promised to invest $500 million each into the ‘new’ business. Earlier this week EchoStar subsidiary company Hughes Network Systems also committed to investing $50 million into the business once it emerges from bankruptcy.
The US Bankruptcy Court for the Southern District of New York has approved a motion to extend the timetable for the company – which continues to operate under ‘debtor in possession’ rules – to submit its reconstruction plan for the Court’s examination.
The new date covering OneWeb’s Exclusive Filing Period is now October 23rd, while its formal Exclusive Solicitation Period is extended to December 22nd 2020.
Under US rules, a debtor normally has the exclusive right to file its restructuring plan for a period of four months (120 days) to make its filing. This decision extends that period.