Virgin Orbit plans to move back deadline for bidders - source

Virgin Orbit Holdings

12/05/2023 17:35

By Joey Roulette
       May 12 (Reuters) - Satellite launch company Virgin Orbit
is planning to move back the deadline for prospective bidders to
buy its assets by a handful of days, according to two sources
familiar with the matter.
    The development was first reported by Sky News.
    Virgin Orbit, founded by billionaire Richard Branson, filed
for Chapter 11 bankruptcy protection in April after the company
struggled to secure long-term funding following a failed
satellite launch in January.
    The source said the delayed process was "about ironing out
some details and giving more time to get deals done".
    Virgin Orbit went public two years ago at a valuation of
roughly $3 billion, but the January mishap left the company
scrambling for new funding and forced it to halt operations.
    U.S. rocket startups have faced a tight funding environment,
exacerbated by the Virgin Orbit bankruptcy. Venture investment
in space startups has dropped 50% year-over-year in 2022,
according to VC firm Space Capital.
    Virgin Orbit, which was spun off from space tourism firm
Virgin Galactic  SPCE.N  in 2017, sends satellites into orbit
using rockets launched from a modified Boeing  BA.N  747 plane.
    The Long Beach, California-based company laid off roughly
85% of its 750 employees. Virgin Orbit listed assets of about
$243 million and total debt at $153.5 million as of Sept. 30.

 (Reporting By Joey Roulette; Editing by David Gaffen and
Shounak Dasgupta)
 ((Joey.Roulette@thomsonreuters.com 7034696632))