A Chapter 11 bankruptcy reconstruction allows the affected business to accept or reject some of the contracts and leases that were in place prior to the bankruptcy.
OneWeb has delivered to its bankruptcy court a long list of contracts, some it will be happy to respect or amend but others it wants to be rejected. The court will decide and those affected by a ‘rejection’ have until September 28th to lodge their protests.
The bankruptcy court will hear arguments on October 2nd.
The list of the proposed rejected contracts is long, and includes Airbus Defence & Space, EchoStar as well as Hughes Network Systems, a Will-i-Am business (I.am.equity), Intelsat, Kymeta Corp, Qualcomm, Coca-Cola, Virgin Atlantic and Virgin Orbit, Deloitte, KPMG, Qualcomm and many others including SoftBank.
Some OneWeb staffers and former employees are also affected. Greg Wyler via his Nevada-based 1110 Ventures LLC company and who founded the company, as well as Brian Holz, who worked for a time at OneWeb and who will lose a share purchase agreement signed in 2017.
There are also some major legal actions against OneWeb including claims by Intelsat and Virgin Orbit. The bankruptcy court’s judge will decide what happens to these later this year.