Shares of Virgin Orbit Holdings Inc. (NASDAQ: VORB) persist its gain in pre trading session as jumps over 50% in previous session as the company’s U.S. subsidiaries, a capable supplier of space launches, declared that it has started a voluntary Chapter 11 bankruptcy case in the District of Delaware’s U.S. Bankruptcy Court in order to sell the company. Virgin Orbit plans to use the Chapter 11 procedure to increase value for its company and assets with help from Virgin Investments Limited in the form of debtor-in-possession finance.
This revelation comes after the Business previously disclosed that it was laying off employees because it was unable to get enough out-of-court funding to maintain its company operations at the present run-rate.
CEO of Virgin Orbit, Dan Hart stated that The Virgin Orbit team proved the system and carried out several successful space flights, including successfully launching 33 satellites into their precise orbit, before developing and putting into use a novel and innovative method of launching satellites into orbit. Along the way, they introduced new technology and managed enormous challenges and risks. Despite their best attempts to improve our financial situation and get new funding, they ultimately have to act in the company’s best interests. They think that when they complete the process of selling the company, purchasers will be drawn in by the innovative launch technology that this team has developed. They now think that the Chapter 11 procedure is the best course of action for finding and concluding an effective and value-maximizing transaction.
“I’m immensely appreciative and proud of each and every one of our teammates for the innovative pioneering spirit they have exemplified as well as for their professionalism and perseverance as we have navigated this challenging period. My thoughts and worries are currently with the many great coworkers and friends who have been dedicated to the purpose and potential of everything that Virgin Orbit stands for and are now navigating their way ahead. I have faith in the foundation we have created and am optimistic that we will complete a deal that will position our business and our technologies for further projects and opportunities.”
The Business has obtained a commitment from Virgin Investments Ltd for $31.6 million in additional money DIP financing to aid in funding the procedure and safeguard its operations. The DIP financing is anticipated to give Virgin Orbit the cash it needs to continue functioning as it advances the pre-petition marketing campaign started to sell the Company and looks for a value-maximizing deal for the company and its assets, pending permission from the Bankruptcy Court.