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Virgin Orbit files for U.S. Chapter 11 bankruptcy protection - Stock Market Latest

Rocket launch provider Virgin Orbit Holdings Inc.
VORB,
-3.00%

said Tuesday that it has filed for Chapter 11 bankruptcy in Delaware, and that it will use the process to “maximize value for its business and assets” as it seeks a sale. The company that is majority owned by Richard Branson’s Virgin Group said it has received a commitment from venture capital conglomerate Virgin Investments Limited for $31.6 million in new money debtor-in-possession financing to continue operating and find a buyer, once it gets approval from the bankruptcy court. The announcement comes after Virgin Orbit said last week that it would lay off around 85% of the company’s workforce, after failing to secure funding following a failed rocket launch in January, Its shares have plunged 89% year to date. “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,” Dan Hart, CEO of Virgin Orbit, said in a statement.

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