Virgin Orbit recordsdata for Chapter 11 chapter safety within the U.S.

Virgin Orbit on Tuesday filed for Chapter 11 chapter safety within the U.S. after failing to safe a funding lifeline.

The California-based satellite tv for pc launch firm lodged the submitting within the U.S. Chapter Court docket within the District of Delaware and is seeking to promote its belongings.

It comes after CNBC obtained audio of Virgin Orbit CEO Dan Hart telling workers throughout an all-hands assembly final week that the corporate was ceasing operations “for the foreseeable future.” The agency additionally mentioned it will lay off almost all of its workforce.

“Whereas we have now taken nice efforts to deal with our monetary place and safe further financing, we in the end should do what’s finest for the enterprise,” Hart mentioned in an announcement Tuesday.

“We consider that the cutting-edge launch expertise that this crew has created could have broad attraction to patrons as we proceed within the course of to promote the Firm. At this stage, we consider that the Chapter 11 course of represents the very best path ahead to establish and finalize an environment friendly and value-maximizing sale,” he added.

Virgin Orbit mentioned Virgin Investments would supply $31.6 million in new cash via debtor-in-possession financing to assist fund the method and shield its operations.

Virgin Orbit developed a system that makes use of a modified 747 jet to ship satellites into house by dropping a rocket from underneath the plane’s wing mid-flight.

The corporate’s final mission suffered a mid-flight failure, with a problem throughout the launch which means the rocket didn’t attain orbit and crashed into the ocean.

Virgin Orbit is amongst a choose few U.S. rocket corporations to efficiently obtain orbit with a privately developed launch automobile. It has launched six missions since 2020, with 4 successes and two failures.

It has been searching for new funds for a number of months, with majority proprietor Richard Branson unwilling to fund the corporate additional.

“In the present day my ideas and considerations are with the numerous proficient teammates and mates now discovering their manner ahead who’ve been dedicated to the mission and promise of all that Virgin Orbit represents,” Hart mentioned.

“I’m assured of what we have now constructed and hopeful to attain a transaction that positions our Firm and our expertise for future alternatives and missions,” he added.

— CNBC’s Michael Sheetz contributed to this report.