Virgin Orbit seeks bankruptcy protection after mission fail

FILE - A repurposed Virgin Atlantic Boeing 747 aircraft, named Cosmic Girl, carrying Virgin Orbit's LauncherOne rocket, takes off from Spaceport Cornwall at Cornwall Airport, Newquay, England, on Jan. 9, 2023. Virgin Orbit said Thursday March 16, 2023 it is pausing all operations amid reports that the company is furloughing almost all its staff as part of a bid to seek a funding lifeline. (Ben Birchall/PA via AP) FILE - A repurposed Virgin Atlantic Boeing 747 aircraft, named Cosmic Girl, carrying Virgin Orbit's LauncherOne rocket, takes off from Spaceport Cornwall at Cornwall Airport, Newquay, England, on Jan. 9, 2023. Virgin Orbit said Thursday March 16, 2023 it is pausing all operations amid reports that the company is furloughing almost all its staff as part of a bid to seek a funding lifeline. (Ben Birchall/PA via AP)

By MICHELLE CHAPMAN / AP Business Writer April 4, 2023 3 min read

Richard Branson’s Virgin Orbit is filing for Chapter 11 bankruptcy protection after a failed mission this year and increasing difficulty in raising funding for future missions.

The company laid off most of its staff on Friday and told the U.S. Bankruptcy Court for the District of Delaware in a filing Tuesday that it was looking to sell its assets.

Virgin Orbit said that it has secured $31.6 million in debtor-in-possession financing from Branson’s Virgin Investments Ltd.

Virgin Orbit CEO Dan Hart said that once the financing is approved by the bankruptcy court, the funds are expected to provide Virgin Orbit with the necessary liquidity to continue operating as it attempts to sell the company.

“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,” Hart said.