Astra Space defaults on borrowings
November 6, 2023
US spaceflight company Astra Space, which is developing high-powered rockets, has defaulted on its bank obligations.
Astra Space disclosed in an SEC securities filing late on November 3rd that it defaulted on a recent debt agreement and may not be able to raise needed cash. It has reportedly barely $10 million in cash in its accounts.
The company warned in its filing that it “can provide no assurance that it will be able to consummate any additional transaction in a timely manner, or at all.”
The obligation required Astra to have at least $15 million of “cash and cash equivalents” on hand. That liquidity obligation was modified after Astra failed to prove compliance a first time, to require “at least $10.5 million of unrestricted, unencumbered cash and cash equivalents.”
The SEC filing added that Astra is “in continued discussions with a number of other investors”.
Astra laid off 25 per cent of its work force in August. It is due to report Q3 numbers on November 13th.
Investors in Astra Space reportedly include BlackRock, Advance, ACME, Airbus Ventures, Innovation Endeavors, Salesforce co-founder Marc Benioff and former Disney CEO Michael Eisner.
Astra has not had the best of flights. Out of seven actual launches, only two were successful.