British billionaire’s satellite company files for bankruptcy

Virgin Orbit, the space exploration and satellite launch company owned by British billionaire Richard Branson, founder of the Virgin Group, has reportedly filed for bankruptcy.

The California-based company, which last week announced the layoff of about 85 percent of its 750 employees, has filed an application with the US District of Delaware Bankruptcy Court for the sale of its assets.

The company stated in its court filing that as of September 30, 2022, it has approximately $243 million in assets and total debt of $153.5 million.

According to the news in Reuters; “We believe that the bankruptcy protection process represents the best way to identify and finalize an efficient and value-maximizing sale,” Virgin Orbit CEO Dan Hart said in a statement.

Virgin Orbit’s first rocket launched from the UK, LauncherOne, failed to reach orbit on its sixth mission in January. The payload of the US and UK intelligence satellites on the rocket, which failed to reach orbit, fell into the ocean.

THE COMPANY TRIED IN MANY WAYS

The company struggled to find new funding after the rocket failure, halted operations and laid off nearly all of its employees on March 15 to save cash.

Virgin Orbit’s bankruptcy filing cited London-based Arqit Ltd as its biggest creditor. According to the information in the application, Virgin Orbit owes Arqit Ltd approximately $10 million.

Virgin Orbit’s second largest creditor is listed as the US Space Force, which has approximately $6.8 million in collateral for future launches.

According to the Forbes list, the founder and owner of the company, Richard Branson, has a total fortune of about 3,000 million dollars.