Astra defaults on debt agreement
The rocket startup Astra revealed on Friday that it was unable to meet the requirements of one of its investors that it maintain at least $10.5 million in cash reserves, and thus defaulted on that debt agreement.
Astra twice last month failed to meet minimum cash reserve requirements associated with a $12.5 million note issuance to New Jersey investment group High Trail Capital.
The debt raise first required that Astra have “at least $15.0 million of cash and cash equivalents” on hand. That liquidity requirement was adjusted after Astra failed to prove compliance a first time, to require “at least $10.5 million of unrestricted, unencumbered cash and cash equivalents.” Having fallen out of compliance a second time, Astra now owes $8 million on the aggregate principal investment.
Sadly, it appears the end for this company is coming.


