Virgin Orbit, a rocket launch company invested by British billionaire Richard Branson, filed for bankruptcy in Delaware Bankruptcy Court on the 4th after months of failed fundraising efforts and sought to sell its assets.
Virgin Orbit has been unable to obtain new funding after a failed rocket launch in January this year, leading the company to announce its closure last week and lay off 85% of its workforce, and is now on the verge of bankruptcy.
“We believe the Chapter 11 process is the most efficient and the best way to maximize the value of the asset sold,” the company’s chief executive, Dan Hart, said in a statement.
According to Virgin Orbit filing documents, as of September 30 last year, the company had registered assets worth $243 million and total debt of about $153.5 million.
Virgin Orbit has secured a commitment from Virgin Investments to allow the former to secure $31.6 million in new funding through debtor-in-possession financing, allowing it to stay afloat while it finds a buyer. Virgin Investments is part of the Virgin Group.
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