Branson's Virgin Orbit files for bankruptcy after launch failure squeezed finances

[BumRushDaShow]

Last edited Tue Apr 4, 2023, 03:28 PM - Edit history (1)

Source: Reuters

WASHINGTON, April 4 (Reuters) - Virgin Orbit Holdings (VORB.O), founded by billionaire 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. 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 (BA.N) 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. The company was valued at $65 million at the close of trading Monday. On Tuesday, its shares shed 24% to trade at a mere 15 cents each. The company's sixth mission in January using its centerpiece LauncherOne rocket, the first rocket launch out of Britain, failed to reach orbit, sending its payload of commercial and defence-related research satellites plunging into the ocean.

The mishap involving the UK's Cornwall Spaceport forced the company to halt operations and furlough nearly all of its employees in March to conserve cash. BUSINESS MODEL Virgin Orbit was set up to launch small rockets and offer short-notice launches from anywhere, including for tactical military purposes, addressing a need highlighted by the conflict in Ukraine. But demand for larger launch rockets and more cost-effective shared payload launches into space on SpaceX's Falcon 9 rocket over the past two years raised the competitive stakes.

Read more: https://www.reuters.com/business/aerospace-defense/bransons-virgin-orbit-files-bankruptcy-2023-04-04/

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Article updated.

Original article/headline -

Richard Branson's Virgin Orbit files for bankruptcy, to seek buyer

WASHINGTON, April 4 (Reuters) - Richard Branson's Virgin Orbit Holdings (VORB.O) filed for Chapter 11 bankruptcy on Tuesday after the satellite launch company failed to secure the long-term funding following a January rocket failure.

The Long Beach, California-based company lodged the filing in the U.S. Bankruptcy Court for the District of Delaware seeking a sale of its assets after announcing the layoff of roughly 85% of its 750 employees last week. "We believe that the Chapter 11 process represents the best path forward to identify and finalize an efficient and value-maximizing sale," Virgin Orbit CEO Dan Hart said in a statement.

Shares in the company fell 18% in pre-market trading. The company listed assets of about $243 million and total debt at $153.5 million as of Sept. 30 in the filing. Virgin Orbit went public in 2021 through a blank-check deal, raising $255 million less than expected. Spun off from Branson's space tourism firm Virgin Galactic in 2017, Virgin Orbit air-launches rockets from beneath a modified Boeing (BA.N) 747 plane to send satellites into orbit.

Virgin Orbit's strategy has been that launching small rockets from a 747 in flight would allow for short-notice launches from anywhere including for tactical military purposes, addressing a need highlighted by the conflict in Ukraine. But a shift in demand toward larger launch rockets and more cost-effective shared rides to space on SpaceX's Falcon 9 rocket over the past two years raised the competitive stakes for Virgin Orbit, analysts and industry executives have said.

[NotHardly]

1. This is the Billionaire who also stuck his dick in space like Bezo ... paid a hefty price

This is just rich .... and by that I mean, rich fucks totally fucking up a company so they can play Emperor of the world or tiny dick in space and then become "just an investor" so no responsibility for anything.

I think it is time for all the billionaires to be taxed back to being just multi-millionaires ... no one gets to have more than 1/2 a billion dollars, everything over is returned to the people they stole it from thru costs, thru wages, thru price gouging.

Ficking fuckwads.

[FakeNoose]

2. With every bankruptcy filed, some people or groups get stiffed

It usually ends up being the middle class' loss. People lose their jobs, investment, property, savings, stocks, unpaid taxes, etc. and other things. The wealthy person who files the bankruptcy usually isn't one of the losers.

[FSogol]

3. Wow, the Billionaire Space Race claims its first victim! What rat hole can they pour money down

in lieu of paying their fair share of taxes?

[Wonder Why]

4. I feel so bad - NOT! Thoughts and Prayers - NOT! The whole concept was

a billionaire creating a joy ride for others who'd rather spend every dime on themselves instead of helping the poor.

[dchill]

5. Maybe he could still afford a smaller rocket...

...just big enough to jump a shark.

[XorXor]

6. I thought that company gave up well over a decade ago after that flight in the 2000s

I was surprised when that company's name started popping up in the media again

*0hh wait, this is different than Virgin Galactic. Which apparently is also still somewhat of a thing.