ROCKET Company Virgin Orbit has filed for Chapter 11 bankruptcy in the United States.
Under the said decision, the company founded by British billionaire Richard Branson can still operate as it restructures its debts.
The decision came after the company failed to secure funding following a major rocket failure earlier this year.
And on March 15, Virgin Orbit furloughed nearly all of its employees to conserve cash.
Currently, the company is seeking to sell its assets as it looks for a new owner.
In a statement,
“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,” said Dan heart, Chief Executive of Virgin Orbit.
In January this year, the company’s LauncherOne rocket failed to reach orbit and sent its payload of US and United Kingdom intelligence satellites into the ocean.
Note, analysts, and industry executives have said that a shift in demand towards larger launch rockets and more cost-effective shared rides to space on SpaceX’s Falcon 9 rocket over the past two years raised the competitive stakes for Virgin Orbit.
