VORB - Virgin Orbit files for bankruptcy will continue sale process

2023-04-04 03:02:20 ET

Aftershocks from SPAC craze that enveloped Wall Street in 2021 are continuing to be felt in the current market environment, with many investors steering clear of loss-making companies. The latest casualty is Virgin Orbit ( NASDAQ: VORB ), which failed to secure more cash months after a historic mission from British soil ended in failure .

"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," CEO Dan Hart said in a statement.

"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 finalize an efficient and value-maximizing sale."

Without another funding lifeline , Virgin Orbit laid off 675 people, or approximately 85% of its staff, and suspended operations on March 30. The firm, which hasn't turned a profit as a public company, listed assets of about $243M and total debt at $153.5M in the Chapter 11 bankruptcy filing.

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