Virgin Orbit files for Chapter 11 bankruptcy protection in 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. Bankruptcy Court within the District of Delaware and is trying to promote its property.

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 stated it will lay off almost all of its workforce.

“While we have taken great efforts to address our financial position and secure additional financing, we ultimately must do what is best for the business,” Hart stated in an announcement Tuesday.

“We believe that the cutting-edge launch technology that this team has created will have wide appeal to buyers as we continue in the process to sell the Company. At this stage, we believe that the Chapter 11 process represents the best path forward to identify and finalize an efficient and value-maximizing sale,” he added.

Virgin Orbit stated Virgin Investments would offer $31.6 million in new cash by debtor-in-possession financing to assist fund the method and defend 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 beneath the plane’s wing mid-flight.

The firm’s final mission suffered a mid-flight failure, with a difficulty in the course of the launch that 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 car. It has launched six missions since 2020, with 4 successes and two failures.

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

“Today my thoughts and concerns are with the many talented teammates and friends now finding their way forward who have been committed to the mission and promise of all that Virgin Orbit represents,” Hart stated.

“I am confident of what we have built and hopeful to achieve a transaction that positions our Company and our technology for future opportunities and missions,” he added.

— CNBC’s Michael Sheetz contributed to this report.