Virgin Orbit looks to sale in Chapter 11
Space launch startup Virgin Orbit has filed for Chapter 11 protection from bankruptcy in the US while continuing the sale of the company.
Last month it laid off 85% of its staff after a failed mission in January to launch the first satellite from UK soil that destroyed several satellites including a prototype by Space Forge in Wales.
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Parent company Virgin Investments is providing $31.6 million in debtor-in-possession (“DIP”) financing to maximize the value of its business and assets. It is looking for a swift conclusion to its sale process in order to provide clarity to customers, vendors and employees. In the interim, Virgin Orbit will continue operating under the jurisdiction of the bankruptcy court.
“The team at Virgin Orbit has developed and brought into operation a new and innovative method of launching satellites into orbit, introducing new technology and managing great challenges and great risks along the way as we proved the system and performed several successful space flights – including successfully launching 33 satellites into their precise orbit,” said Dan Hart, CEO of Virgin 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,” he said. “We believe that the cutting-edge launch technology that this team has created will have wide appeal to buyers as we continue in the process to sell the Company. At this stage, we believe that the Chapter 11 process represents the best path forward to identify and finalize an efficient and value-maximizing sale,”
“I’m incredibly grateful and proud of every one of our teammates, both for the pioneering spirit of innovation they’ve embodied and for their patience and professionalism as we’ve managed through this difficult time.
cases.ra.kroll.com/virginorbit/
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