Internet connectivity provider OneWeb, present in certain markets in Africa, filed for a financial loan before the American courts on April 10. The company that declared bankruptcy in March 2020 wants to raise between $ 75 and $ 300 million to continue operating while trying to sell its specter assets.
The Japanese holding company SoftBank Corp – which has already invested $ 2 billion in OneWeb and which announces a financial loss of $ 17 billion resulting from a drop in the fair value of investments due to the deterioration of the market environment – is announced as the leader of this operation. The initial loan, which the court will rule on April 24, is expected to provide OneWeb with an immediate amount of $ 10 million while the remaining $ 65 million will depend on OneWeb’s progress in selling its specter assets.
According to spacenews.com , SoftBank and other companies have agreed to lend OneWeb the additional $ 15 million if the company obtains at least one letter of intent from a spectra buyer. OneWeb aims to achieve this goal by May 11. Once OneWeb obtains a binding purchase agreement for its specter assets, SoftBank and the other companies involved in the loan plan to release another tranche of $ 25 million to OneWeb which plans to conclude such an agreement by June 12.
Finally, if OneWeb completes its spectrum sale by June 22, lenders have agreed to offer another tranche of up to $ 25 million to cover the cost of regulatory approvals to complete the transaction. OneWeb would be required, under the terms of the loan, to provide weekly updates on its expenses and progress toward a sale. The SoftBank-led loan includes an option of up to $ 225 million in additional borrowing to “replace and swap outstanding prepayment obligations”.