Branson's Virgin Orbit files Chapter 11 bankruptcy plan (updated)

Virgin Orbit Holdings

20/04/2023 04:42

(Adds details, background)
       April 19 (Reuters) - 
    Richard Branson's Virgin Orbit Holdings Inc  VORB.O  and its
subsidiaries in the United States filed a Chapter 11 bankruptcy
plan with the U.S. Bankruptcy Court for the District of
Delaware, the company said in a statement on Wednesday. 
    Earlier this month, Virgin Orbit filed for Chapter 11
bankruptcy protection after the satellite launch company
struggled to secure long-term funding following a failed launch
in January. 
        On Wednesday, the company proposed a May 4 deadline for
indications of interest for its assets, asking the court to
approve bid procedures including interest deadlines, and a bid
deadline of May 14, 2023, it said in the statement. 
  
        "We expect the filing of the plan and disclosure
statement will help us to efficiently conclude the Chapter 11
process once we have completed the sale of the company," Dan
Hart, chief executive of Virgin Orbit said in the statement. 
  
    The company is seeking the sale of its assets, after laying
off roughly 85% of its 750 employees.
        The California-based company's sixth mission in January
using its centerpiece LauncherOne rocket, failed to reach orbit,
sending its payload of commercial and defence-related research
satellites plunging into the ocean.
  

 (Reporting by Jahnavi Nidumolu in Bengaluru; Editing by
Nivedita Bhattacharjee)
 ((Jahnavi.Nidumolu@thomsonreuters.com;))