Virgin Orbit Reportedly Preparing for Insolvency

Richard Branson’s private space company Virgin Orbit is reportedly planning to file for bankruptcy in the case it is unable to secure new funds, accordingly Sky news.

The company works with two restructuring firms, Alvarez & Marsal and Ducerato develop a backup plan while talks continue with potential investors to help Virgin Orbit restart its operations, Sky News reported on Sunday. That comes days later This was announced by Virgin Orbit ceased all operations and furloughing the majority of its employees to cut costs.

Virgin Orbit ran into deep financial troubles after the venture UK failed begin this past January. The companys Start me Mission should herald a new era for Virgin Orbit, llaunch from UK soil for the first time. It would also have been a historic launch for Britain, as it would have put satellites into orbit from British soil for the first time.

Instead, a fuel filter came loose, overheating the engine and causing the LauncherOne rocket booster to crash back to earth. The missile failure resulted in the loss of nine satellites on board and sparked an ongoing investigation by authorities. in both the UK and the United States.

The rocket’s failure caused concern among Virgin Orbit’s investors, and the company’s shares fell 22% immediately afterwards. CNBC reported at the time. Last week, the company paused its operations to try to work out a plan for how to proceed.

Virgin Orbit was already showing signs of a financial struggle before the recent rocket failure Investors are pumping $55 million into the company since November last year. since it was put into operation in January 2021Virgin Orbit has managed to complete just five successful launches.

As investigations into the recent rocket failure continue, the satellite launch company likely won’t be able to see it Cosmic Girl Planes will soon be flying over British soil. Civil Aviation Authority officials have told members of the space industry that the UK does not expect to host another launch, The Telegraph, in 2023 reported.

Virgin Orbit originally hoped to launch Cosmic Girl with a new LauncherOne missile just weeks after the incident, but that remains far too ambitious even months after the missile failure.

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