Virgin Orbit files for bankruptcy in the US

To help fund the process and protect its operations, the company has received a commitment from Virgin Investments Limited for $31.6m in new money DIP (debtor in procession) financing which, with Bankruptcy Court approval, will fund Virgin Orbit as it looks for a buyer.

Virgin Orbit’s ‘Start Me Up’ mission in January, 2023 was the first attempt to launch satellites from UK soil. The launch system consisted of a modified Boeing 747-400 named Cosmic Girl, fitted with a rocket dubbed LauncherOne under its port wing that carried a payload of government and commercial satellites.

A dislodged fuel filter in the rocket set off a chain of events that ended the mission, but prior to that the company had completed four successful missions on the west coast of the US.

In a statement, Dan Hart, CEO of Virgin Orbit, 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.”

Hart continued: “I’m incredibly grateful and proud of every one of our teammates, both for the pioneering spirit of innovation they’ve embodied, and for their patience and professionalism as we’ve managed through this difficult time.”

Virgin Orbit said it is ‘focused on a swift conclusion to its sale process’ but will operate in the interim as a debtor-in-possession under the jurisdiction of the bankruptcy court, with the intent to fulfil remuneration of staff, suppliers and vendors.