Richard Branson’s Virgin Orbit filed for bankruptcy

Virgin Orbit, founded by British billionaire Richard Branson and engaged in launching satellites, filed for bankruptcy. The company said in a press release issued Tuesday.

It notes that the company is ceasing operations due to a lack of funding after a failed satellite launch from the U.K. in January. Earlier, Virgin Orbit CEO Dan Hart said the firm “has been unable to secure funding” to provide itself with a “clear path.” He said it had decided to lay off about 90 percent of all but 100 employees from all but the company’s divisions.

Virgin Orbit’s first-ever launch of space satellites from Britain ended in failure in January due to an engine failure on the second stage of its LauncherOne launcher. Virgin Orbit promised to make another attempt to launch satellites from Great Britain by the end of the year.

Virgin Orbit’s satellites were launched using a modified Boeing 747 aircraft, which released a LauncherOne rocket attached under its left wing at an altitude of about 7 miles. As noted by the experts interviewed by Reuters, competitors Virgin Orbit, primarily the U.S. company SpaceX Ilon Musk, were able to offer more economical options for launching satellites from the ground. In addition, with the help of a reusable carrier rocket Falcon 9 company SpaceX can be taken not only satellites but also manned spacecraft.

“The Virgin Orbit team has developed and implemented a new and innovative method of launching satellites into orbit, introduced new technologies, and dealt with major challenges and serious risks along the way. We’ve proven the system works, and we’ve flown several successful missions, including placing 33 satellites in orbit,” said Hart. – While we have gone to great lengths to deal with financial issues and to provide an additional infusion of cash, we must ultimately do what is best for business.”

The Virgin Orbit CEO expressed that “the advanced launch technology created will appeal to buyers” given the company’s ongoing divestiture process. He stressed that the company has begun reorganization proceedings under Chapter 11 of the U.S. Bankruptcy Act. TV channel Sky News added that at the moment the market value of Virgin Orbit is $ 65 million, although two years ago it exceeded $ 3 billion.

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