Virgin Orbit extends worker furlough, continues funding talks -CEO

Virgin Orbit Holdings

27/03/2023 23:43

By Joey Roulette
       March 27 (Reuters) - Billionaire Richard Branson's
cash-strapped Virgin Orbit Holdings  VORB.O  will extend an
unpaid furlough for most of its employees as talks seeking new
funding continue, the company's chief executive said in an email
to employees on Monday.
    "Our investment discussions have been very dynamic over the
past few days, they are ongoing, and not yet at a stage where we
can provide a fulsome update," Virgin Orbit CEO Dan Hart wrote
in the email seen by Reuters.
    Virgin Orbit declined further comment.
    Reuters reported last week that Texas-based Matthew Brown
had been in talks to invest $200 million in the company. Those
talks have collapsed, said two people familiar with the
discussions who asked not to be identified. Brown declined to
comment on Monday.
    Virgin Orbit, teetering on bankruptcy after a January rocket
failure and struggles to raise funds, furloughed nearly all its
750 employees on March 15 while it sought a financial lifeline
that would allow it to focus on upgrading its launch business.
    The rocket maker was spun out of Branson's space tourism
firm Virgin Galactic in 2017. Branson owns a controlling stake
of Virgin Orbit of roughly 75%.
    A small group of employees were called back to work last
week, while the others were to remain furloughed until at least
Monday when Hart had been expected to provide an update in a
company-wide virtual meeting.
    "In order that we may provide you with meaningful details we
have delayed the all-hands scheduled for today," Hart said in
the email, which employees received minutes before the expected
meeting was to begin. Hart added he expects a new company-wide
meeting will take place "no later than Thursday."
    Virgin Orbit shares were down 12% in after-hours trading
Monday after closing down 26 cents, or 33%, at 54 cents a share.

 (Reporting by Joey Roulette, Editing by Rosalba O'Brien)
 ((benjamin.klayman@thomsonreuters.com; 313-600-2277; Reuters
Messaging: benjamin.klayman.thomsonreuters.com@reuters.net))