Virgin Orbit Files For Bankruptcy

(RTTNews) - Space launch provider Virgin Orbit Holdings, Inc. (VORB), along with its U.S. subsidiaries, announced Tuesday that it commenced a voluntary proceeding under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court in the District of Delaware in order to effectuate a sale of the business.

Virgin Orbit said it intends to use the Chapter 11 process to maximize value for its business and assets, with the support of Virgin Investments Limited in the form of debtor-in-possession or DIP financing.

The company has received a commitment from Virgin Investments Limited for $31.6 million in new money DIP financing to help fund the process and protect its operations.

The company previously had said that it was reducing its workforce due to an inability to raise sufficient out-of-court capital to continue operating its business at the current run-rate.