California based Virgin Orbit has filed for Chapter 11 bankruptcy protection as the failed to secure funding amid the failure of the January satellite launch.
Sir Richard Branson owns 75% of Virgin Orbit and Virgin Group made the filing in the US Bankruptcy Court.
They listed assets of £195 million and Virgin Orbit’s total debt is £123 million as of 30 September and
Chapter 11 can allow for the reorganisation of a struggling company, which keeps the business operating whereby creditors can be paid over time.
Virgin Orbit chief executive Dan Hart said, “The team at Virgin Orbit has developed and brought into operation a new and innovative method of launching satellites into orbit, introducing new technology and managing great challenges and great risks along the way as we proved the system and performed several successful space flights, including successfully launching 33 satellites into their precise orbit.
“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.
“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.
“At this stage, we believe that the Chapter 11 process represents the best path forward to identify and finalise an efficient and value-maximising sale.”