Virgin Orbit files for bankruptcy protection in US after failing to find funding
Virgin Orbit, the satellite launch company founded by the billionaire Sir Richard Branson, has filed for bankruptcy protection in the US after last-ditch efforts to find funding for the struggling space firm fell through.
It comes less than a week after the companyannounced it was cutting 85% of its workforce, leaving roughly 100 employees to run what was left of the business. The US-based firm will now seek a buyer for its assets.
“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,” the chief executive, Dan Hart, said.
“We believe the cutting-edge launch technology 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 the Chapter 11 process represents the best path forward to identify and finalise an efficient and value-maximising sale.”
The bankruptcy proceedings come two months after Virgin Orbit – which was founded by Branson and is 75% owned by Virgin Investments – failed in its mission to launch the first satellite from UK soil in January.
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The company said the botched launch, which was billed as a historic moment for Britain, was the result of an anomaly that meant the rocket could not reach the required altitude and was later lost.
Read more on theguardian.com
