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Branson's Virgin Orbit files Chapter 11 bankruptcy plan

Published 04/19/2023, 11:14 PM
Updated 04/20/2023, 04:51 AM
© Reuters. FILE PHOTO: The Virgin Orbit building is seen after the company paused operations last week, in Long Beach, California, U.S., March 22, 2023.  REUTERS/Mike Blake

(Reuters) -Richard Branson's Virgin Orbit Holdings Inc and its subsidiaries in the United States filed a Chapter 11 bankruptcy plan with the U.S. Bankruptcy Court for the District of Delaware, the company said in a statement on Wednesday.

Earlier this month, Virgin Orbit filed for Chapter 11 bankruptcy protection after the satellite launch company struggled to secure long-term funding following a failed launch in January.

On Wednesday, the company proposed a May 4 deadline for indications of interest for its assets, asking the court to approve bid procedures including interest deadlines, and a bid deadline of May 14, 2023, it said in the statement.

"We expect the filing of the plan and disclosure statement will help us to efficiently conclude the Chapter 11 process once we have completed the sale of the company," Dan Hart, chief executive of Virgin Orbit said in the statement. 

© Reuters. FILE PHOTO: Richard Branson, founder of Virgin Group, poses for a photograph on board of his new cruise liner, the Scarlet Lady at Dover Port in Dover, Britain, February 21, 2020. REUTERS/Simon Dawson

The company is seeking the sale of its assets, after laying off roughly 85% of its 750 employees.

The California-based company's sixth mission in January using its centerpiece LauncherOne rocket, failed to reach orbit, sending its payload of commercial and defence-related research satellites plunging into the ocean.

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