Virgin Orbit’s bankruptcy marks end of its satellite dream

Virgin Orbit filed for bankruptcy on Tuesday after the satellitelaunch company tied to British billionaire Richard Branson failed to secure the funding needed to keep operating and cut 85% of its staff.

The company listed $243m in assets and $153.5m for its total debt in a Chapter 11 petition filed in Delaware.

The move punctuates the rapid fall of the Long Beach, California-based company, after a high-profile launch failure in January and collapse in its stock price. Virgin Orbit temporarily halted operations in March while it sought additional capital, and later laid off 675 employees.

Branson’s Virgin Investments has provided $31.6m to keep the pared-back operation going while it continues to seek a buyer, according to a statement.

CEO Dan Hart said the company was looking for a deal that would position Virgin Orbit and its assets “for future opportunities and missions”.

The company — which is part of Branson’s empire that includes Virgin Atlantic Airways and space flight company Virgin Galactic Holdings — has not turned a profit as a public company.

The launch company began in 2017 as an offshoot of Virgin Galactic.

Virgin Orbit’s business centred on launching small satellites into orbit. It had successfully launched 33 satellites, the company said.

Unlike some competitors that launch rockets from the ground, Virgin Orbit uses a technique known as air launch, in which its LauncherOne rocket is deployed at a high altitude from underneath the wing of a modified Boeing 747.

The company began developing the rocket at Virgin Galactic, years before the satellite-launch business was formally created.

Virgin Orbit successfully launched its first mission to orbit in January 2021 and completed four successful flights to 2022.

The company had planned to increase its launch frequency this year, but had to reassess after the failed January mission, which was slated to be the first orbital launch from British soil. Its vehicle never reached orbit after incurring a problem with a fuel filter during the flight, leading to the loss of nine small satellites.

THE COMPANY LISTED $243M IN ASSETS AND $153.5M FOR ITS TOTAL DEBT IN A CHAPTER 11 PETITION

/Reuters Grounded: Cosmic Girl, a Virgin Boeing 747-400, sits on the tarmac with Virgin Orbit’s LauncherOne rocket attached to its wing, in January. The rocket did not reach orbit.