Virgin Orbit, Richard Branson’s rocket firm, information for chapter

(CNN) – Virgin Orbit, the rocket firm based by British billionaire Richard Branson, has filed for chapter in america.

The California-based firm stated in an announcement Monday that it has filed for Chapter 11 chapter, which suggests it may possibly proceed to do enterprise whereas it restructures its debt.

“Whereas we now have made vital efforts to handle our monetary state of affairs and safe further financing, we should finally do what’s finest for the enterprise,” Dan Hart, CEO of Virgin Orbit, stated within the assertion posted on its web site.

Hart stated he believes the corporate’s “superior launch know-how” can have “nice enchantment to consumers as we proceed the method of promoting the corporate.”

Virgin Investments, a sister firm to Virgin Orbit, will pour $31.6 million into the satellite tv for pc launcher to assist it keep afloat whereas the corporate searches for a brand new proprietor.

The announcement comes simply days after Virgin Orbit stated it might lay off about 85% of its workforce to chop bills as a result of it’s unable to boost further funds.

The corporate was based in 2017 to make a small rocket known as LauncherOne that may launch light-weight satellites rapidly and cheaply into orbit. Rockets take off from a modified Boeing 747.

It’s one in all a number of corporations, together with Jeff Bezos’ Blue Origin, which have tried to commercialize satellite tv for pc launches.

Virgin Orbit bumped into hassle in January when one in all its rockets failed to achieve orbit as a result of its engine overheated. It was the corporate’s first try to launch a satellite tv for pc from British soil. Accomplished 4 earlier profitable launches from California.