Virgin Orbit, an American aerospace company owned by billionaire Richard Branson, has filed for bankruptcy. The reason is called a lack of funding, according to Reuters.
Earlier, the company’s management said it would cease operations “for the foreseeable future” and lay off almost all employees. The layoffs at Virgin Orbit will affect 675 positions, or about 85% of the workforce.
Amid the news of the layoffs and the cessation of operations, the company’s shares lost more than 41%, falling in price to $0.19 after hours. The previous close of trading took place at the level of $0.34 (minus 16%).
- Virgin Orbit was spun off from Branson’s Virgin Galactic in 2017, and the billionaire remains its largest shareholder, with 75%. The second largest 18% part belongs to the UAE Mubadala Sovereign Wealth Fund.
- The company has been looking for funds for several months, Branson himself does not want to finance the company any more, notes CNBC.
- In the second decade of March, the aerospace company sent almost all employees on indefinite leave and almost completely suspended “operational activities” for at least a week. The company did so in the midst of financing problems.
- On March 28, Virgin Orbit shares fell 26% to a record low.
- Virgin Orbit is engaged in launching satellites into Earth orbit for commercial purposes. The company’s first launch in January 2023 ended in failure, after which Virgin Orbit’s shares collapsed 30%.
Author:
karina pardaeva
Source: RB
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