Virgin Orbit, the satellite launch company tied to British billionaire Richard Branson, is facing a financial crisis and may be on the verge of bankruptcy. The company’s valuation has dropped from nearly $4 billion in 2021 to less than $100 million today. As of March 16, 2023, Virgin Orbit initiated a company-wide operational pause and is in discussions with investors to find a funding lifeline to save the company.
According to a CNBC report, Virgin Orbit CEO Dan Hart informed employees during an all-hands meeting that the company will be ceasing operations “for the foreseeable future” after failing to secure the necessary funding. In response to the crisis, Virgin Orbit has begun drawing up detailed contingency plans for insolvency and is working with two restructuring firms, Alvarez & Marsal (A&M) and Ducera, to explore alternative solutions[4,6,10].
The company’s financial troubles have led to the furlough of most of its employees, and bankruptcy could become a reality for the satellite launch provider as soon as this week. Despite efforts to find new funding sources, Virgin Orbit is reportedly preparing for insolvency.
Virgin Orbit, founded by Richard Branson, went public in 2021 through a merger with a special purpose acquisition company. The company is now facing one of the toughest financial strains in its history and may file for bankruptcy if it fails to secure funding as soon as possible.