“While we have taken great efforts to address our financial position and secure additional financing, we ultimately must do what is best for the business,” CEO Dan Hart stated within the remark. “At this stage, we believe that the Chapter 11 process represents the best path forward to identify and finalize an efficient and value-maximizing sale.”
Branson based Orbit in 2017 as a sister company to his higher spaceflight corporate, Virgin Galactic. It completed an early luck in 2021 when it flew a rocket into orbit from the Mojave Air and Space Port in California. But in early January, its first try at an orbital launch from the United Kingdom failed, with the corporate reporting a untimely shutdown.
The corporate has additionally struggled financially since going public in 2021.
Virgin Investments Limited will supply $31.6 million in “debtor-in-possession” financing, pending approval from the Delaware Bankruptcy Court, to permit Virgin Orbit to stay working whilst it searches for a buyer, Virgin Orbit stated.
Aaron Gregg contributed to this file.