OneWeb, the high-profile London-based satellite start-up, has filed for bankruptcy protection in the US.
The firm, which has been building a network to deliver broadband across the globe, blamed the Covid-19 crisis for its inability to secure new investment.
OneWeb issued a statement saying it was laying off most of its staff while it seeks a buyer for the company.
The start-up recently launched the 74th satellite in a constellation planned to total at least 648 spacecraft.
The idea is that this network will provide high-bandwidth, low-latency internet connections to any point on Earth, bar Antarctica.
Rumours of a collapse had been swirling around OneWeb this past week. It had raised £2.6bn to implement its project but experts in the space industry speculated that double this sum would probably be needed to complete the system.
The statement released by OneWeb in the early hours of Saturday, London time, said the company had been close to obtaining financing but that, “the process did not progress because of the financial impact and market turbulence related to the spread of Covid-19”.