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Virgin Orbit has filed for Chapter 11 bankruptcy, the company has said. The company, which puts satellites into orbit, failed to receive funding and can’t afford to continue operations. The decision to file for bankruptcy comes just days after it laid off 85% of its total workforce or 675 employees.
Discussing the decision, Dan Hart, CEO of Virgin Orbit, said:
To help the company through the bankruptcy process, Virgin Investments Limited has supplied it with $31.6 million in debtor-in-possession financing. This still needs to be approved by the Bankruptcy Court but it will give Virgin Obit liquidity as it seeks to sell the company and its assets. Virgin Orbit said it’s “focused on a swift conclusion” to its sale process.
It’s important to point out that Virgin Orbit is not the same as Virgin Galactic. Virgin Galactic is the company that flies tourists to the edge of space to experience micro-gravity before heading back to Earth. With rising interest rates, other unprofitable rocketry companies could also collapse.
Discussing the decision, Dan Hart, CEO of Virgin Orbit, said:
To help the company through the bankruptcy process, Virgin Investments Limited has supplied it with $31.6 million in debtor-in-possession financing. This still needs to be approved by the Bankruptcy Court but it will give Virgin Obit liquidity as it seeks to sell the company and its assets. Virgin Orbit said it’s “focused on a swift conclusion” to its sale process.
It’s important to point out that Virgin Orbit is not the same as Virgin Galactic. Virgin Galactic is the company that flies tourists to the edge of space to experience micro-gravity before heading back to Earth. With rising interest rates, other unprofitable rocketry companies could also collapse.