Arab Press

بالشعب و للشعب
Tuesday, Nov 12, 2024

Virgin Orbit: Richard Branson's rocket firm files for bankruptcy

Virgin Orbit: Richard Branson's rocket firm files for bankruptcy

British billionaire Sir Richard Branson's rocket company Virgin Orbit has filed for bankruptcy in the US after failing to secure new investment.

The satellite launch company halted operations weeks ago but it hopes to find a buyer for the business.

The company, based in California, announced last week that it would cut 85% of its 750-strong workforce.

Earlier this year, a Virgin Orbit rocket failed to complete its first-ever satellite launch from UK soil.

Virgin Orbit's boss Dan Hart said that although the company had "taken great efforts" to address its finances and secure more funding, "we ultimately must do what is best for the business."

He said that Virgin Orbit will now concentrate on finding a buyer for the business "to provide clarity on the future of the company to its customers, vendors, and employees".

Virgin Orbit was founded in 2017 and is a spin-off from Sir Richard's space tourism company Virgin Galactic.

It launches rockets from beneath modified Boeing 747 planes to send satellites into space.

But in January, an attempt to send a satellite into orbit from the UK for the first time failed because a rocket fuel filter had become dislodged, causing one of the engines to overheat.

The mission had been billed as a milestone for UK space exploration.

It was hoped it would mark a major step in helping to turn the country into a global player - from manufacturing satellites to building rockets and creating new spaceports.

Virgin Orbit, which is mostly owned by Virgin Group, scrambled to find new funding following the UK rocket failure and paused operations last month to conserve cash.

The company, which listed its shares on New York's Nasdaq index in 2021, had debts of $153.5m as of September last year.

On Tuesday, the company said one of its sister companies - Virgin Investments - would provide $31.6m in new money to help Virgin Orbit through the process of finding a buyer.

It has filed for what is known as Chapter 11 bankruptcy protection in the US. This allows a business to keep operating and address its financial issues while providing protection against creditors who are owed money.

Mr Hart said despite the financial problems, he was confident the company had a "wide appeal" to a new owner because its team had created "cutting edge launch technology".

But Danni Hewson, head of financial analysis at investment firm AJ Bell, said the company's failed launch mission from the UK was "not the best advert" for its technology.

"Neither is Virgin Orbit's collapse the best advert for the space investment theme," she added.

"This industry may have significant potential at some point in the unknown future but investors tempted to reach for the stars have only had their fingers burned so far."

Sir Richard is one of a very small group of billionaires who have expanded their business empires into launching satellites and attempts to pioneer commercial space travel.

The others include Jeff Bezos, founder of online retailer Amazon who set up his space company, Blue Origin, as well as Twitter and Tesla owner Elon Musk, who founded SpaceX.

Jeff Bezos was part of the crew who completed a spaceflight for his company Blue Origin


Sir Richard and Virgin Group have invested more than $1bn in the business in a quest to launch satellites through Virgin Orbit but also to develop reusable "space planes" to take tourists on brief trips to sub-orbital space.

Virgin Galactic has already started selling tickets for $250,000 for these journeys and celebrities such as pop star Justin Bieber have signed up.

But the main players in the "billionaire space race" have also faced criticism for what some see as offering joy rides for the super-wealthy at a time when countries across the globe are being impacted by climate change.

However, Mr Bezos has insisted his space exploration is partly an environmental mission to "to take all heavy industry, all polluting industry and move it into space, and keep Earth as this beautiful gem of a planet that it is", he previously said.

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Israeli Strike Severely Disrupts Iran's Missile Production, Reports Saudi News
Blinken Sees Opportunity in Hamas Leader's Death
Israel Eliminates Successor of Hezbollah Leader Hassan Nasrallah
Global Unrest: Kenyan Political Tensions, India's Air Quality Crisis, Uganda's Opposition Trials, and Gaza's Humanitarian Plea Amid Israeli Offensive
Israeli Airstrike Targets Hezbollah's Financial Resources
Global Tensions and Cultural Engagement: North Korea's Alleged Troop Support for Russia, King Charles' Visit to Australia, and More
Iran Warns Biden on Israel Support Amid Rising Regional Tensions as Arab American Voters Poised to Sway 2024 Election
Regional Turmoil: Railway Safety Protests in Egypt, Humanitarian Crisis in Gaza, and Rising Tensions with Hezbollah and Iran
Global Tensions and Humanitarian Missions: WHO's Evacuation Efforts in Gaza Amid Rising Conflict Concerns
Global Tensions and Challenges: US Defense Moves, Rising Polio Cases, and Calls for Climate Leadership
UN Experts Warn of Complicity in War Crimes Supporting Israeli Occupation; Global Leaders Grapple with Geopolitical Crises
Global Crisis Update: Belgian War Crimes Investigation, Singapore Terror Plot Foiled, and Rising Middle East Tensions
Geopolitical Tensions Escalate: Lebanon-Iran Dispute, Macron's UN Defense, and North Korea’s Role in Ukraine
Biden Reinforces Transatlantic Ties in Germany as Middle East Tensions Escalate with Key Hamas Leader's Death and UN Peacekeepers Under Threat
Global Shifts: Fuel Crisis Drives Change in Nigeria, Diplomatic Overtures in South Asia, and Rising Tensions in Korea
Global Tensions Surge: German Warship Intercepts Drone, Jakarta Braces for Prabowo's Inauguration, and Israel Eliminates Hamas Leader
Xi Jinping Urges Troops to Prepare for Conflict Amid Taiwan Drills
Netanyahu Condemns Alleged Hezbollah Assassination Attempt
Israeli Leaflet Campaign in Gaza: A Critical Update
Espionage Tensions, Global Crises, and Calls for Humanitarian Action Define Geopolitical Landscape
Global Tensions Rise: New Sanctions on North Korea, Sudanese Refugee Crisis, and Shifts in U.S. and European Policies
Global Tensions and Political Shifts: Key Developments in Indonesia, U.S., Malaysia, China, Turkiye, and the Middle East
Southern Africa's Historical Drought Crisis Amid Global Tensions and Strategic Alliances
Biden Praises Israel's Military Action Against Hamas Chief Yahya Sinwar
Yahya Sinwar’s Death Marks Pivotal Moment in Gaza War
Global Conflicts Escalate: World Bank Warns of $20 Billion Damages in Gaza, U.S. and International Tensions Rise
Hezbollah Deputy Chief Calls for Ceasefire Amidst Escalating Conflict with Israel
US Warns Israel of Potential Aid Cuts Over Gaza Assistance Delays
Meta Faces Legal Battle Over Teen Social Media Addiction
U.S. Criticizes Israel's Tactics in Beirut Amidst Humanitarian Concerns; Italy Opens Controversial Migrant Hub
Amid Israel-Hezbollah Tensions, France Evacuates Citizens; Global Leaders Urge De-escalation and Aid Efforts
Macron Urges Netanyahu to Honor UN Resolutions Amid Rising Tensions; Global Protests and Diplomatic Summits Highlight Complex Geopolitical Climate
Escalating Tensions: Israel's Planned Retaliation Against Iran Amid Global Geopolitical Shifts
Rising Tensions in Lebanon and Israel: Sectarian Strains and Military Moves Amid Humanitarian Efforts
Global Tensions and Political Shifts: UN Concerns in Tunisia, Italian Troop Security, Afghan Resettlement, and Strategic Alliances Forming
President of Venezuela Nicolás Maduro: "Long live Venezuela, long live Palestine, long live Lebanon. May their fights for freedom and dignity live on!
Regional Tensions Escalate: Iran and Israel Clash, U.S.-Philippines Drills Stir Southeast Asia, and Singapore Faces Legacy Dispute
Russia's Call for a BRICS Financial System Alternative
Israel Vows to Limit Retaliatory Strike on Iran to Military Facilities
Rising Geopolitical Tensions: UN Highlights Lebanese Child Displacement as U.S. Faces Shifts in Middle Eastern Alliances
Hezbollah's Drone Strikes Intensify Israeli-Lebanon Tensions, Prompting Global Security Concerns
International Tensions Escalate: Sweden's Qur'an Burning Trial, China's Diplomatic Moves in the Middle East, and Global Protests
Middle East Tensions, Nile River Pact Disputes, and Global Health Initiatives Highlight Complex International Challenges
Tensions Soar Globally: London Murder Trial, Middle East Conflicts, and UK's Landmark Anti-Zionism Ruling
Netanyahu Urges UN to Relocate Lebanon Peacekeepers Amid Escalating Tensions
EU Sanctions Iran for Arming Russia Amid Ukraine War; Global Tensions Escalate
Ukraine Strikes Deep in Russia; EU Denounces Israeli Attacks on UN Peacekeepers; Archaeologists Uncover Secrets of Petra's Hidden Tomb
Escalating Middle East Tensions and Global Shifts: Key Developments from Gaza to Southeast Asia and Europe
Global Tensions Surge: Iran's Missile Strikes, U.S. Security Concerns, and Regional Conflicts Intensify
Global Tensions Rise: Calls for Justice in Lebanese Journalism, Palestinian Prisoner Deaths, and International Diplomatic Strains
×