Virgin Orbit files for bankruptcy, seeks buyer

Virgin Orbit, the satellite launch firm based by Richard Branson, has filed for Chapter 11 chapter and can promote the enterprise, the agency stated in a press release Tuesday.

The California-based firm stated final week it was shedding 85 p.c of its workers—round 675 individuals—to cut back bills attributable to its lack of ability to safe adequate funding.

Virgin Orbit suffered a significant setback earlier this yr when an try and launch the primary rocket into space from British soil resulted in failure.

The corporate had organized the mission with the UK Area Company and Cornwall Spaceport to launch 9 satellites into space.

On Tuesday, the agency stated “it commenced a voluntary continuing below Chapter 11 of the U.S. Chapter Code… with a purpose to effectuate a sale of the enterprise” and supposed to make use of the method “to maximise worth for its enterprise and belongings.”

Final month, Virgin Orbit suspended operations for a number of days whereas it held funding negotiations and explored strategic alternatives.

However at an all-hands assembly on Thursday, CEO Dan Hart instructed workers that operations would stop “for the foreseeable future,” US media reported on the time.

“Whereas we now have taken nice efforts to deal with our financial position and safe further financing, we in the end should do what’s greatest for the business,” Hart stated within the firm assertion on Tuesday.

“We imagine that the cutting-edge launch know-how that this workforce has created can have vast attraction to consumers as we proceed within the course of to promote the Firm.”

Based by Branson in 2017, the agency developed “a brand new and revolutionary methodology of launching satellites into orbit,” whereas “efficiently launching 33 satellites into their exact orbit,” Hart added.

Virgin Orbit’s shares on the New York Inventory Alternate have been down 3 p.c at 19 cents on Monday night.

© 2023 AFP