Virgin Orbit Files for Bankruptcy Protection After Rocket Failure and Funding Issues

Virgin Orbit, the satellite launch company founded by billionaire Richard Branson, has filed for bankruptcy protection in the US after failing to secure long-term funding to recover from a rocket failure in January.[0] The company, which was spun out of Branson’s Virgin Galactic in 2017, has launched six missions since 2020 with four successes and two failures.[1] Virgin Orbit’s LauncherOne rockets are air-launched from a modified Boeing 747-400 carrier, allowing the company to operate more flexibly than using fixed launch sites.[2] The company is now focused on a swift conclusion to its sale process in order to provide clarity on the future of the business for customers, vendors, and employees.[3] Branson’s Virgin Investments Limited has committed $31.6m in debtor-in-possession financing to help fund the process and protect Virgin Orbit’s operations.[4] Once approved by the bankruptcy court, the financing should provide Virgin Orbit with the liquidity it needs to continue operating as it tries to find a buyer.[5]

0. “Virgin Orbit files for bankruptcy protection in US after failing to find funding” The Guardian, 4 Apr. 2023, https://www.theguardian.com/business/2023/apr/04/virgin-orbit-files-for-bankruptcy-protection-in-us-failing-to-find-funding-richard-branson

1. “Virgin Orbit fails to secure funding, will cease operations and lay off nearly entire workforce” CNBC, 30 Mar. 2023, https://www.cnbc.com/2023/03/30/virgin-orbit-funding-ceasing-operations-layoffs.html

2. “Richard Branson’s Virgin Orbit, headquartered in Long Beach, slashing 85% of its workforce” KABC-TV, 2 Apr. 2023, https://abc7.com/richard-branson-virgin-orbit-long-beach-california/13073817/

3. “VIRGIN ORBIT TO CONTINUE SALE PROCESS UNDER CHAPTER 11 PROTECTION” Virgin Orbit, 4 Apr. 2023, https://virginorbit.com/the-latest/virgin-orbit-to-continue-sale-process-under-chapter-11-protection/

4. “Richard Branson’s Space Venture Has Officially Crashed and Burned” Gizmodo, 4 Apr. 2023, https://gizmodo.com/richard-bransons-space-venture-has-officially-crashed-a-1850297693

5. “Virgin Orbit Files For Bankruptcy, Looks For Buyer” Aviation Week, 4 Apr. 2023, https://aviationweek.com/aerospace/commercial-space/virgin-orbit-files-bankruptcy-looks-buyer