Richard Branson's Virgin Orbit ceases operations; auctions $36 Million worth assets

Updated : May 24, 2023 14:34
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Editorji News Desk

Richard Branson's satellite launch firm, Virgin Orbit has said that the company is ceasing its operations. This, months after the company faced a major satellite launch mission failure. 

Auctioning off $36 million worth assets, the bankrupt satellite launch firm is also selling its California headquarters to a small-launch firm Rocket Lab USA Inc. Rocket Lab won Virgin Orbit's primary manufacturing site for $16 million during an auction. Along with the site the firm has also bought the machinery and equipments. 

Virgin Orbit in its statement said that it will sell its assets to four winning bidders. "The combined total proceeds were determined by a rigorous and competitive auction which maximizes value for the estate and minimizes the remaining duration of the Company’s restructuring," the statement said.

Virgin Orbit is also planning to sell its aircraft assets. As per the filing, Stratolaunch will be buying the firm's aircrafts that include modified Boeing 747 "Cosmic Girl" carrier aircraft for $17 million. 

Virgin Orbit had laid off  85%  of its employees in March and filed for bankruptcy in early April. This after the company struggled to secure long-term funding in January. As per reports the remaining of the employees will also be let go by next week.

bankruptcy

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