Virgin Orbit has registered for Chapter 11 bankruptcy to save itself in the U.S.

April 5, 2023: On Tuesday, Virgin Orbit filed for Chapter 11 bankruptcy protection in the U.S. following the failure to secure a funding lifeline.

The California-based satellite launch firm lodged the document in the U.S. Bankruptcy Court in Delaware and desired to sell its assets.

It comes after obtained audio of Virgin Orbit CEO Dan Hart telling employees in an all-hands meeting in the previous week that the Company witnessed operations “for the foreseeable future.” The firm said it would lay off almost all of its workforce.

“While we have made great efforts to address our fiscal position and secure additional financing, we must do what is best for the firm,” Hart stated on Tuesday.

“We believe that the cutting-edge launch technology this group has created will have a wide request to buyers as we continue to sell the Company. At this stage, we think the Chapter 11 process represents the good path forward to know and finalize an efficient and value-increase sale,” he further stated.

Virgin Orbit stated that it was focused on a swift end to its sale process to clarify the firm’s future.

Virgin Orbit stated a commitment from Virgin Investments had permitted the Company to secure $31.6 million in new money through “debtor-in-possession” financing. This process, sometimes called DIP financing, refers to funding for firms that have filed for Chapter 11 bankruptcy protection to permit them to keep operating.