Virgin Orbit files for bankruptcy

With the support of Virgin Investments in the form of debtor-in-possession financing, the firm has said it intends to use the Chapter 11 process to maximise value for its business and assets. This follows the news that it will be reducing its workforce due to an inability to raise sufficient out-of-court capital to continue operating its business at the current run rate.  

Its chief executive Dan Hart said: “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 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-maximising 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.  

“Today my thoughts and concerns are with the many talented teammates and friends now finding their way forward who have been committed to the mission and promise of all that Virgin Orbit represents. I am confident of what we have built and hopeful to achieve a transaction that positions our Company and our technology for future opportunities and missions.” 

To help fund this process, the company has received a commitment from Virgin Investments of $31.6m (£25.3m) in new debtor-in-possession financing, which – once approved by the bankruptcy court – is expected to provide the firm with the necessary liquidity to continue operating as it continues to look to sell the company.