If you're an aerospace fan, you'll be interested to hear the latest news that Richard Branson's company, Virgin Orbit, filed for bankruptcy in court on Tuesday morning.
In the words of the CEO, Dan Hart, the company has taken all possible steps to reverse the situation and secure debt financing, but these have ultimately proved unsuccessful and so they must do what they believe is rational and right. Reuters published the company's balance sheet data as of September 30, which shows assets of approximately $243 million and its total debt of $153.5 million. Following these reports, Virigin Orbit added that they will try to find a potential buyer as soon as possible.
Employees will also bear the consequences of the company's failed financial management. The firm will lay off about 85% of its workers, who will be paid severance from the Branson investment group's funds. Subsequently, it was added that during the bankruptcy proceedings, nearly $31.6 million of new investment funds will be injected into the firm, allowing the firm to raise short-term capital.
Figure 1 Price development of Virgin Orbit since its inception. Source: investing.com
