Satellite operator Intelsat has warned it expects its planned $14 billion merger with SoftBank-backed OneWeb to fall through.
Debt-land Intelsat disclosed it has failed to get enough of its creditors to accept the deal, which would have required debt investors to accept less than the value of their holdings, Reutersreported.
The terms of the deal were worth approximately $2.85 billion less than the total face value of the debt investments.
SoftBank CEO Masayoshi Son had planned to combine the two satellite operators to create a global network of satellites capable of providing internet access worldwide. SoftBank had intended to take a 39.9% share in the combined company for around $1.7 billion.
With the deal likely to fail, Intelsat has terminated a series of debt swap offers associated with the planned merger.
According to the report, Softbank has had negotiations with other satellite operators on potential replacement deals.
The company said in a statement that it remains enthusiastic about OneWeb's prospects as a standalone entity and plans to continue to work with the OneWeb management teams on alternative paths to growth.