Virgin Orbit Holdings Inc, a satellite launching business founded by billionaire Richard Branson, has filed for Chapter 11 bankruptcy protection after the company struggled to secure long-term funding following a failed launch in January. Virgin Orbit‘s Struggle for FundingThe January mishap involving the UK’s Cornwall Spaceport forced Virgin Orbit to halt operations and furlough nearly all of its employees in March to conserve cash. This made obtaining new capital difficult for Virgin Orbit, according to the company’s Chief Executive Dan Hart in a court declaration. Virgin Investments, a unit of Virgin Group, will provide $31.6 million to Virgin Orbit while it looks for a buyer, the companies said. Impact of the Bankruptcy FilingThe bankruptcy filing comes less than two years after Virgin Orbit went public at a valuation of roughly $3 billion.

Source: The Guardian April 05, 2023 09:16 UTC