Virgin Orbit Seeks Bankruptcy Protection in the US Due to Inability to Secure Funding

Virgin Orbit, the corporation that operates satellite launch missions and was created by billionaire entrepreneur Sir Richard Branson, has sought legal financial protection in the United States due to the failure of last-minute attempts to secure funding for the struggling space-based business.

The company recently revealed that it will be reducing its personnel by 85% and only about 100 workers will continue to manage the remaining operations. This announcement was made less than a week ago. The company from the United States is planning to sell its assets and is currently looking for a buyer.

Although we've made significant efforts to improve our financial situation and acquire more funding, we must ultimately prioritize what is in the best interest of the company, stated Dan Hart, the CEO.

We think that the advanced launching technology created by this group will be very attractive to potential purchasers as we move forward with the sale of the company. Currently, our best option is to proceed with the Chapter 11 process to make sure we find the most efficient and valuable sale possible.

Virgin Orbit, which was established by Branson and is largely owned by Virgin Investments, has entered bankruptcy proceedings. This is happening three months following the company's unsuccessful attempt to launch the first satellite from UK soil in January.

According to the company, the failed introduction, which was promoted as a momentous occasion for the United Kingdom, occurred due to an irregularity that prevented the rocket from achieving the necessary height and ultimately resulted in its loss.

During the beginning of March, Virgin Orbit had to temporarily stop working and placed their employees on furlough. This was due to their effort to acquire financial aid.

Branson alone provided over $70 million in the last four months to support the company, but unfortunately, there were no external investors interested in investing. As a result, the company had to make the tough decision to let go of most of its approximately 800 employees by the end of March. This layoff was mainly carried out on Monday of this week.

It was recently reported that Virgin Group may be signaling the possibility of employment options for individuals who are currently unemployed at its associated company, Virgin Galactic. This particular company's objective is to provide trips to space for leisure purposes.

On Tuesday, Virgin Investments announced that it will offer Virgin Orbit $31.6m to maintain its operations during its attempt to sell off its assets. Virgin Orbit declared that it intends to compensate its providers and suppliers as much as possible and is dedicated to cooperating with its clients in finding a purchaser who can carry on meeting their demands.

Hart expressed hope that Virgin Orbit, or its individual parts, would have a new lease on life with a different owner. He believes in the company and its technology, and believes that a successful deal will put them in a stronger position to undertake various opportunities and endeavors in the future.