Why Is Virgin Orbit Stock Trading Lower Today?

Virgin Orbit VORB shares are trading lower on Monday following a report suggesting the company is working with restructuring firms amid plans for an insolvency in case it cannot secure new funding.

According to the article from Benzinga, billionaire Richard Branson‘s commercial space satellite venture Virgin Orbit is reportedly working with two restructuring firms on fallback plans for its insolvency days in the event that it cannot secure new funding. 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.

VORB Price Action: Virgin Orbit has a 52-week high of $7.59 and a 52-week low of $0.64.

Virgin Orbit shares are down 21.3% at $0.51 at the time of writing, according to Benzinga Pro.