Virgin Orbit files for bankruptcy protection
By Abigail Townsend
Date: Tuesday 04 Apr 2023
(Sharecast News) - Richard Branson's Virgin Orbit has filed for bankruptcy protection in the US after the rocket launch company failed to secure fresh funding.
The firm, which joined Nasdaq in December 2021 with a valuation of $3.7bn, said it had started Chapter 11 bankruptcy proceedings in Delaware and would look to sell the business.
The California-based company last week laid off 85% of its workforce. According to the Financial Times, chief executive Dan Hart said at the time that the business was halting operations indefinitely.
In a statement on Tuesday, Hart said: "The team at Virgin Orbit has developed and brought into operation a new innovative method of launching satellites into orbit.
"While we have taken great efforts to address our financial position and secure additional financing, we ultimately must do what is best for the business.
"We believe that the cutting-edge launch technology that the team has created will have wide appeal to buyers as we continue in the process to sell the company."
Virgin Orbit was founded by Branson and remains 75% owned by Virgin Investments, which has committed $31.6m of new financing to allow the business to continue until a buyer is secured.
In January, Virgin Orbit attempted the UK's first space launch. A customised Boeing 747 jet called Cosmic Girl took off from Spaceport Cornwall amid much fanfare, and the LauncherOne rocket on board was successfully released over the Atlantic Ocean.
But shortly afterwards Virgin Orbit said an "anomaly" meant the rocket had been unable to reach the required altitude and both the rocket with the nine small satellites it was carrying were lost.
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