Action Investments Limited - Richard Branson's Virgin Orbit's Last Flight

SHEUNG WAN, Hong Kong - May 25, 2023 - PRLog -- Virgin Orbit said in a regulatory filing that it has launched voluntary Chapter 11 bankruptcy procedures, only days after announcing that it was laying off 85% of its personnel and looking for a buyer due to a liquidity deficit.

"Although the firm has made significant attempts to resolve its financial situation and acquire more finance, we must ultimately do what is best for the business," stated CEO Dan Hart. He went on to say that the Chapter 11 procedure "represents the greatest road ahead for identifying and finalizing an efficient and value-maximizing transaction."

Virgin Orbit said that it has obtained a debtor-in-possession (DIP) funding commitment of $31.6 million from Branson's investment arm, Virgin Investments, to keep the company going while it seeks a buyer for its assets. Virgin Investments has previously contributed $10.9 million to cover the expenses of the layoffs.

Failure of the January Launch

Virgin Orbit had successfully launched 33 satellites into orbit until its latest effort, the first from British land, failed in January, dumping nine US and UK surveillance satellites into the Atlantic Ocean.

Virgin Orbit's stock is down 23%, and it has lost 98% of its worth since going public in a special purpose acquisition company (SPAC) transaction in December 2021.

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