Virgin Orbit Bankruptcy 2025: The Final Flight and $31.6M Rescue Effort
Virgin Orbit, the satellite launch company founded by Sir Richard Branson, filed for Chapter 11 bankruptcy in 2025 after failing to secure new funding. Discover the story behind its last flight and ongoing efforts to sell assets.
Virgin Orbit has officially filed for Chapter 11 bankruptcy after unsuccessful attempts to raise additional capital.
Virgin Orbit Holdings (VORB), the satellite launch venture spun off from billionaire Sir Richard Branson’s Virgin Galactic in 2017, has reached its final chapter by filing for bankruptcy. The company struggled to secure new funding, forcing it to initiate voluntary Chapter 11 proceedings.
In a recent regulatory filing, Virgin Orbit announced it would lay off 85% of its workforce and actively seek a buyer to address severe cash flow issues.
CEO Dan Hart stated, "Despite significant efforts to improve our financial standing and attract new investment, we must prioritize the company’s future. Chapter 11 offers the optimal path to efficiently manage a sale that maximizes value for stakeholders."
Virgin Orbit has secured $31.6 million in debtor-in-possession (DIP) financing from Branson’s Virgin Investments to maintain operations during the asset sale process. Previously, Virgin Investments contributed $10.9 million to cover costs associated with workforce reductions.
January 2024 Launch Failure Impact
While Virgin Orbit successfully deployed 33 satellites into orbit, its January 2024 launch—the first from British soil—ended in failure, causing nine U.S. and U.K. surveillance satellites to crash into the Atlantic Ocean.
Following this setback, Virgin Orbit’s stock plummeted 23%, culminating in a staggering 98% loss in value since its December 2021 SPAC public listing.
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