Richard Branson's Space Dreams Crash As Virgin Orbit Files For Bankruptcy

Richard Branson‘s Virgin Orbit Holdings Inc VORB has filed for Chapter 11 bankruptcy, a day after flagging substantial doubt about its ability to continue as a going concern for at least 12 months.

What Happened: Virgin Orbit lodged the Chapter 11 bankruptcy filing in the U.S. Bankruptcy Court for the District of Delaware on Tuesday.

The company listed assets and liabilities between $100 million and $500 million, as per the filing.

Virgin Orbit management expects to reveal in an upcoming filing that there is substantial doubt about its ability to continue as a going concern for at least 12 months from the expected issuance date of its form 10-K, the company had said in a filing to the Securities and Exchanges Commission on Monday.

“As of December 31, 2022, we have not generated positive cash flows from our operations or generated sufficient revenues to provide sufficient cash flows to enable us to finance our operations, and may not be able to raise sufficient capital to do so,” the company had said.

For 2022, the rocket company expects to report a net loss of about $191.2 million and an accumulated deficit of approximately $1,011.6 million as of Dec. 31.

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Last week, CEO Dan Hart told employees that the company is ceasing operations for the foreseeable future and laid off 675 employees after it failed to procure funding. Virgin Orbit had halted all its operations starting March 16 and furloughed nearly all of its employees to look out for potential funding.

Price Action: Virgin Orbit shares rose 1% in extended trading after closing down 3% at $0.194, according to data from Benzinga Pro.

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