Virgin Orbit Stock Is Rocketing Higher: What's Going On?

Virgin Orbit Holdings Inc VORB shares are taking off Wednesday afternoon. The stock appears to be reacting favorably to a tweet from a Telegraph reporter who is listening in on the bankruptcy call.

What To Know: Virgin Orbit shares came crashing down to Earth on Tuesday after the company filed for bankruptcy in order to effectuate a sale of its business.

The bankruptcy filing came just days after the company said it was cutting a majority of its workforce due to the inability to raise sufficient capital to continue operating its business as usual.

To help fund the process and protect operations, Virgin Investments Ltd made a commitment to provide $31.6 million in new debtor-in-possession financing.

Traders appear to be circling a new tweet from Telegraph reporter Matt Field updating investors on the progress of the bankruptcy call. A potential emergency cash injection appears to be on the table. 

"Virgin Orbit and its lawyers are trying to agree [on] an emergency cash injection, or debtor in possession financing, of around $31m, with the court," Field said Wednesday afternoon.

Virgin Orbit's average session volume over a 100-day period is about 7.2 million, according to Benzinga Pro. Wednesday's trading volume was approaching 60 million at publication time.

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VORB Price Action: Virgin Orbit shares were up 29.5% at 19 cents at the time of writing, according to Benzinga Pro.

Photo: courtesy of Virgin Orbit.