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.
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.