Kleos Space, a Luxembourg-based company monitoring RF signals from space for defense and intelligence, announced yesterday that it is filing for bankruptcy.
The company has not been able to raise the cash needed to progress a converting note advised on June 6, which followed Australia Securities Exchange (ASX) pausing trading on the company on May 3. Kleos’ principal creditor, Pure Asset Management Pty Ltd., alerted leadership on Tuesday that it was no longer willing to fund the company’s activities.
RF tracking from space
Kleos’ business centered on its three clusters of four satellites, each tasked with monitoring RF signals and pinpointing their locations across the Earth’s surface. The technology is useful for tracking ships and vehicles, and in 2022, ~60% of the company’s revenue came from US defense customers.
Kleos has been facing monetary and technological woes for a while now.
- In its 2022 results, Kleos reported losses of €11.3M ($12.5M) compared to revenues of €272,000 (~$300,000).
- The company also warned earlier this year that its satellites, designed for 5-year missions, would end up only continuing operations for about 18 months.
What now?
Kleos’ principal creditor has called its loans due and payable immediately, and the company’s board acknowledged it isn’t able to pay off the debt. Kleos has already petitioned a local Luxembourg court for bankruptcy adjudication, and is pulling together the evidence required to close out the case.
