British Billionaire Richard Branson has filed for bankruptcy protection in the United States for his company, Virgin Orbit. Virgin Orbit, is a satellite launch company whose fortunes have sunk since one of its rocket failed to reach orbit. The satellite company could not secure the long-time funding necessary to recover from rocket failure earlier this year.As per reports, the filing of the Bankruptcy protection was done in the US Bankruptcy Court for the District of Delaware. Following the losses, the company has also laid off 85 percent of its 750 employees. In the filing, Virgin Orbit listed assets of about USD 243 million and total debt at USD 153.5 million as of September 30.The Richard Branson-founded company used an innovative method to launch satellites into orbit: a modified Boeing 747 would fly overhead with a rocket carrying satellites beneath its wing. The rocket would separate once it was in the air and ignite its engines to ascend into orbit before releasing the satellites. The companys most recent attempt, which was made in Cornwall, UK, was unsuccessful, however, because the rocket failed to enter orbit and the nine satellites it carried were lost. The California-based corporation was attempting the first satellite launch from Britain, and the mission had considerable support from the nations space community. Virgin Orbit then announced that it would try again, but funding soon dried up, and the value of the companys stock began to decline.Virgin Orbit went public in 2021In 2021, the business went public via a blank-check deal, raising USD 255 million less than anticipated. Virgin Orbit, a division of Bransons space tourism company Virgin Galactic, fires rockets into the air from beneath a modified Boeing 747 to place satellites in orbit.The company also claimed that launching small rockets from a 747 in flight would allow launches on short notice from anywhere. But, analysts and business leaders claim that over the past two years, a shift in consumer preferences towards larger launch rockets and more affordable shared spaceflights on SpaceXs Falcon 9 rocket has increased Virgin Orbits competitive stake.Reason for halt in servicesVirgin Orbits woes began after the company failed in its sixth mission in January as its LauncherOne rocket. This was the companys first mission from Britain, which failed to reach orbit and sent US and UK intelligence satellites plunging into the ocean. After the incident, the company failed to secure its funding. Thereafter, on March 15, the company was forced to halt its operations.The investment could not accomplishA Texas-based venture capitalist Matthew Brown was in talks to invest USD 200 million in the company last month. However, the talks got derailed and Virgin Orbit could not secure any funding. Meanwhile, between November and March, the satellite launch company received USD 50 million from Bransons Virgin Group in the form of financing that was secured by machinery and other assets in the event of bankruptcy. In addition, Virgin Orbit raised USD 225 million less than expected when it went public in 2021.Listing in NasdaqAs of September last year, the company, whose shares will be listed on the Nasdaq index in New York in 2021, owed USD 153.5 million in debt. The company on Tuesday announced that one of its sibling companies, Virgin Investments, will contribute USD 31.6 million in new funding to assist Virgin Orbit in finding a buyer.The company has now requested Chapter 11 bankruptcy protection, as it is known in the US. This offers a defence against owed-money creditors while enabling a business to continue operating and handle its financial problems.
