Branson's Virgin Orbit Files For Bankruptcy After Launch Failure Squeezed Finances

Virgin Orbit, founded by Richard Branson, filed for Chapter 11 bankruptcy on Tuesday after the satellite launching business struggled to secure long-term funding following a failed launch in January. From a report: The filing comes less than two years after Virgin Orbit first went public at a valuation of roughly $3 billion. But the January mishap left the company scrambling for new funding and forced it to halt operations. "We believe that the Chapter 11 process represents the best path forward to identify and finalize an efficient and value-maximizing sale," Virgin Orbit Chief Executive Dan Hart said in a statement. The company, which was spun off from space tourism firm Virgin Galactic in 2017, sends satellites into orbit using rockets launched from a modified Boeing 747 plane. The Long Beach, California-based company lodged the filing seeking a sale of its assets in a Delaware court days after announcing the layoff of roughly 85% of its 750 employees. Virgin Orbit listed assets of about $243 million and total debt at $153.5 million as of Sept. 30. The company went public in December 2021 through a blank-check merger, raising $255 million less than expected.

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