The $14 million merger between Japan’s Softbank’s One Web and Intelsat looks set to fail after the Japanese company failed to get agreement from Intelsat’s creditors.
Reuters reported that negotiations on the deal concluded without a deal ahead of a self-imposed deadline.
Creditors had been offered a debt swap, but that would have involved the acceptance of a discount on their bonds.
It’s expected the two parties will officially call off the merger on Friday.
OneWeb, previously known as WorldVu, proposes a constellation of approximately 648 satellites expected to provide a global Internet broadband service to individual consumers by 2019.