Billionaire Richard Banson’s satellite launch company files for Bankruptcy

New Delhi (India), 5th April 2023: After a rocket launch failure in January, Virgin Orbit Holdings (VORB.O), owned by Richard Branson, failed to find long-term financing, and the satellite launch business filed for Chapter 11 bankruptcy on Tuesday.

After announcing the layoffs of about 85% of its 750 employees last week, the Long Beach, California-based business filed the petition in the U.S. Bankruptcy Court for the District of Delaware, asking for a sale of its assets.

Virgin Orbit CEO Dan Hart said in a statement, “We believe that the Chapter 11 process represents the best path forward to identify and finalise an efficient and value-maximising sale.”

In pre-market dealing, the company’s shares plummeted by 18%. According to the filing, the business had total debt of $153.5 million as of September 30 and assets of about $243 million.

Virgin Orbit floated on the stock market in 2021 using a blank-check arrangement, earning $255 million less than anticipated.

While claiming to have worked with Virgin Orbit “for many years,” the UK Space Agency claimed that the company’s problems were a “commercial matter.”It also stated that the UK space industry is “thriving” and brings in £17.5 billion annually.

Sir Richard is one of the very few billionaires who have extended their business empires to include satellite launches and initiatives to establish commercial space travel.