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Billionaire Richard Branson‘s commercial space satellite venture Virgin Orbit Holdings Inc. VORB is reportedly working with two restructuring firms on fallback plans for its insolvency days in the event that it cannot secure new funding.
What Happened: Virgin Orbit, the sister company of Virgin Galactic Holdings Inc. SPCE, is formulating fallback plans in case they cannot procure new funding, reported Sky News.
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Virgin Orbit is now working with restructuring firms Alvarez & Marsal and Ducera, the report stated.
Last week, Virgin Orbit said that it was halting all operations from March 16 to bring the company out of its financial crisis. Virgin Orbit’s financial constraints were further aggravated after it failed to deploy nine small satellites into lower Earth orbit early this year. The investigation into the failed mission is nearly complete, the company said.
The halt is expected to last till March 21. In the meantime, the company would look out for potential funding and explore other strategic opportunities.
The company is presently in talks with multiple investors about funding to recommence operations. All insolvency planning is being run out of U.S., said Sky News.
Since listing on the Nasdaq in May 2021, Virgin Orbit shares fell 93.3% until last close.
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Image and article originally from www.benzinga.com. Read the original article here.