Categories: World

Space carrier Virgin Orbit files for bankruptcy in the United States

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Virgin Orbit seeks protection from creditors (stock image)

The U.S. lawsuit with creditor claims protection will promote a sale of the company, as Virgin Orbit announced on Tuesday. A failed satellite launch earlier this year had sent things into a tailspin.

The company has been spun off from Branson’s other space company, Virgin Galactic, which, among other things, wants to offer tourist flights to space. Virgin Orbit had already drastically reduced the number of employees last week after it could not get fresh money.

With 675 employees, about 85 percent of the working population should lose their job. Bankruptcy protection proceedings under Chapter 11 of the US bankruptcy law are now seen as the best course of action for a sale, it said Tuesday. Company director Dan Hart pointed out that 33 satellites had been successfully launched into orbit.

Virgin Orbit was instrumental in an effort to launch the first satellite from British soil earlier this year. An aircraft first took the launch vehicle to a high altitude before launching it. But the mission failed. In mid-March, Virgin Orbit announced that it would suspend operations for the time being.

(SDA)

Source: Blick

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