We are amid a new Space Race 2.0. Many space-faring nations are now in a not-so-veiled competition to establish viable long-term bases, operations, and human settlements on the Moon and other celestial bodies. And venturing into outer space is no longer only an exploratory and scientific pursuit. Space is now commercialized. Space tourism has commenced. Mining in space to obtain rare-earth minerals on asteroids and the valuable resources on the Moon is on the horizon.
Lenders and other investors provide the necessary funding for capital-intensive activities in outer space. They, accordingly, take security interests in the assets in outer space that the borrower owns or will own. These assets include satellites, equipment, machinery, and valuable minerals.
The post-default exercise of creditor remedies with respect to assets in outer space is an untested area. The article “The Final Frontier: Creditors’ Recovery of Assets in Outer Space” delves into applicable space law, secured transactions law, bankruptcy law and legal considerations related to creditors’ remote or autonomous disablement and/or repossession of an asset in outer space through use of technology, including robotic arms, after a debtor’s default.
The American Bankruptcy Institute, which published the article in its flagship Journal, is a multi-disciplinary, non- partisan organization devoted to bankruptcy issues. ABI has more than 12,000 members, representing all facets of the insolvency field. For more information, visit abi.org.
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