Virgin Orbit, the satellite tv for pc launch firm based by Richard Branson, has filed for Chapter 11 chapter and can promote the enterprise, the agency mentioned in an announcement Tuesday.
The California-based firm mentioned final week it was shedding 85 % of its workers — round 675 folks — to cut back bills due to its incapability to safe enough funding.
Virgin Orbit suffered a significant setback earlier this 12 months when an try to launch the primary rocket into house from British soil led to failure.
The firm had organized the mission with the UK Space Agency and Cornwall Spaceport to launch 9 satellites into house.
On Tuesday, the agency mentioned “it commenced a voluntary proceeding under Chapter 11 of the U.S. Bankruptcy Code… in order to effectuate a sale of the business” and supposed to use the method “to maximize value for its business and assets.”
Last month, Virgin Orbit suspended operations for a number of days whereas it held funding negotiations and explored strategic alternatives.
But at an all-hands assembly on Thursday, CEO Dan Hart informed workers that operations would stop “for the foreseeable future,” US media reported on the time.
“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,” Hart mentioned within the firm assertion on Tuesday.
“We believe that the cutting-edge launch technology that this team has created will have wide appeal to buyers as we continue in the process to sell the Company.”
Founded by Branson in 2017, the agency developed “a new and innovative method of launching satellites into orbit,” whereas “successfully launching 33 satellites into their precise orbit,” Hart added.
Virgin Orbit’s shares on the New York Stock Exchange have been down 3 % at 19 cents on Monday night.
