On Friday, Masten Space Systems, a company developing a lunar lander for a NASA mission, filed for Chapter 11 bankruptcy, planning to sell one of its major assets to a competitor.
In the U.S. Bankruptcy Court for the District of Delaware, Masten is filed for Chapter 11 bankruptcy. The company, based in Mojave, California, reported having estimated assets of between $10 million and $50 million and estimated liabilities in the same range.
NASA said that it had received notification its payloads slated for delivery aboard Masten Mission One may be affected by Masten business operations. The agency is working closely with the company to ensure that any potential changes comply with Federal Acquisition Regulations.
In the event Masten Space Systems is failing to complete its task order, NASA will manifest its payloads on other CLPS flights.
NASA also adds that of the revised value of the award of $81.3 million, the agency paid Masten $66.1 million to date.
Industry sources report that Masten Space Systems experiences financial problems recently, forcing it to discharge its staff for the month of July and lay off many of the people working on the XL-1 project.
Sean Bedford, general counsel of Masten Space Systems told SpaceNews, “Masten intends to use the Chapter 11 process to streamline Masten’s expenses, optimize its operations and conduct sale processes that maximize value for its unsecured creditors.”
He further says that they are hopeful about the process which will enable Masten to continue operations and deliver value for its customers and the space industry.
