Virgin Orbit said Tuesday that it has filed for Chapter 11 bankruptcy in the United States. File photo courtesy of Virgin Orbit
April 4 (UPI) — Satellite launch provider Virgin Orbit announced Tuesday that it has filed for Chapter 11 protection as it seeks to sell the business.
The filing was in the US Bankruptcy Court for the District of Delaware, he said, adding that he intends to use the Chapter 11 process to “maximize the value of his business and assets.”
“While we have gone to great lengths to address our financial position and secure additional funding, ultimately we must do what is best for the business,” Virgin Orbit CEO Dan Hart said in a statement. a declaration. “We believe the cutting-edge launch technology this team has created will have great buyer appeal as we continue to sell the company.
“At this stage, we believe the Chapter 11 process represents the best path forward to identify and finalize an efficient and value-maximizing sale.”
Founded by British billionaire Sir Richard Branson in 2017, Virgin Orbit began commercial operations in 2021, launching a total of 33 satellites into orbit.
However, its bankruptcy filing comes about three months after it failed to get nine satellites into orbit in January. It was to be the first satellite launch from British soil.
Virgin Orbit last month executed a company-wide pause in operations, furloughing 600 employees, while saying it would give an update in the coming weeks on its future, fueling speculation that bankruptcy could be the next step. from the California-based company.
In its announcement on Tuesday, Virgin Orbit said it has received a commitment of $31.6 million from Virgin Investments to help finance the bankruptcy process and protect operations.
Once approved, the Chapter 11 protection is expected to make available the necessary liquidity for Virgin Orbit to continue operating as it seeks to sell the company, he said.
“I am incredibly grateful and proud of each of our teammates, both for the pioneering spirit of innovation they have embodied and for their patience and professionalism as we have managed to get through this difficult time,” Hart said.
“Today, my thoughts and concerns are with the many talented teammates and friends who are now finding their way forward and who have committed themselves to the mission and promise of all that Virgin Orbit stands for.”