Virgin Orbit files for bankruptcy
Less than a week after it laid off 85% of its workforce, Virgin Orbit’s management has filed for Chapter 11 bankruptcy.
Under Chapter 11, it appears the company can still be purchased and re-established, much like Firefly Aerospace was when it filed for bankruptcy. Since Richard Branson’s Virgin Group pumped a lot of cash into the company in the past six months, exceeding $70 million, it would get first crack at ownership rights. We should therefore not be surprised if Virgin Orbit comes back to life, owned by Branson and bought for pennies on the dollar, with the little stockholders and investors left in the lurch.
Less than a week after it laid off 85% of its workforce, Virgin Orbit’s management has filed for Chapter 11 bankruptcy.
Under Chapter 11, it appears the company can still be purchased and re-established, much like Firefly Aerospace was when it filed for bankruptcy. Since Richard Branson’s Virgin Group pumped a lot of cash into the company in the past six months, exceeding $70 million, it would get first crack at ownership rights. We should therefore not be surprised if Virgin Orbit comes back to life, owned by Branson and bought for pennies on the dollar, with the little stockholders and investors left in the lurch.