Richard Branson's space mission has failed completely.

The company, Virgin Orbit, which specializes in launching satellites, has been hit by a major setback. It has declared that it is seeking protection under Chapter 11 bankruptcy laws in the state of Delaware. The firm was founded by British entrepreneur Richard Branson.

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Virgin Orbit has made an announcement today via a press release that they aim to use the filing to get the most out of their business while they search for a potential buyer. The company has secured $31.6 million in support from Virgin Investments Limited, which will provide Virgin Orbit with enough liquidity to make a sale once the bankruptcy court approves it. Currently, the company is continuing to operate as normal, and has asked the Bankruptcy Court for permission to use their available funds and DIP financing to keep things running and continue to pay their employees.

The CEO, Dan Hart, stated in a press release that despite our best efforts to improve our financial situation and obtain more funding, we need to prioritize what is best for the company. According to him, we have concluded that Chapter 11 process is the most suitable way to move forward, as it will enable us to identify and finalize a sale that is efficient and maximizes our value.

Virgin Orbit faced financial difficulties because of a minor $100 filter that is responsible for causing a rocket accident. It all began in January when Virgin Orbit launched the Start Me Up mission to test its own Cosmic Girl, which is a Boeing 747 plane equipped with a LauncherOne booster rocket under its wing. After taking off from Spaceport Cornwall in southwest England, Cosmic Girl detached LauncherOne upon reaching space. The rocket successfully separated as it soared to an altitude of 112 miles (180 kilometers), with a speed of 11,000 miles per hour (17,700 km per hour) before the mishap occurred. Unfortunately, the LauncherOne and its payload both fell back down to Earth due to a problem. Virgin Orbit confirmed via Twitter the following month that it was the filter's fault; it caused the Newton 4 engine to run out of fuel, leading to the accident.

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Although Virgin Galactic, the sister company of Virgin Orbit, is dealing with its own challenges, it's apparent that Virgin Orbit has been struggling. Documentation submitted to the Securities and Exchange Commission on February 1 of this year reveals that Virgin Investments Limited has invested $55 million into Virgin Orbit over three separate transactions since November 2022, indicating that the company has been experiencing cash flow problems.

Virgin Orbit, a company that launches satellites into space, had to stop working and temporarily lay off most of its employees last month because it was having financial problems. They were trying to find someone to invest in the company so they could keep going. They thought they had found someone who would give them $200 million to help out, but it turns out it might not have been a real offer. Because of this, they had to keep their workers on furlough and stop working for a little longer.

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