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Richard Branson’s Virgin Orbit rocket firm files for bankruptcy

Richard Branson at Virgin Orbit

Virgin Orbit

  • Richard Branson’s Virgin Orbit rocket firm has filed for Chapter 11 bankruptcy.
  • It failed to secure funding to continue operations.
  • The company announced it was laying off 85% of its staff and ceasing operations “for the foreseeable future,” CNBC reported last week.

Richard Branson’s Virgin Orbit filed for Chapter 11 bankruptcy on Tuesday after it failed to secure funding to continue operations, the rocket launch company said in a filing.

“At this stage, we believe that the Chapter 11 process represents the best path forward to identify and finalize an efficient and value-maximizing sale,” Dan Hart, the CEO of Virgin Orbit, said in a statement.

The rocket launch company listed assets of about $243 million and total debt of $153.5 million as of September 30, 2022, per Reuters, citing the company’s bankruptcy filing.

Virgin Investments, another of Branson’s firms, provided $31.6 million in fresh funds to Virgin Orbit while it seeks a new buyer, according to the statement.

Founded by Branson in 2017, Virgin Orbit went public in a SPAC merger in 2021. The company was spun off from space tourism company Virgin Galactic.

The company announced last Thursday it was laying off 85% of its staff and ceasing operations “for the foreseeable future,” according to audio of a company all-hands meeting obtained by CNBC.

This story is developing. Please check back for updates.

Read the original article on Business Insider
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