Virgin Orbit Fights to Avoid Bankruptcy

Virgin Orbit is fighting to avoid bankruptcy either by securing funding or a potential buyout. The company furloughed most of its workforce last week, as CEO Dan Hart and other executives spoke to potential investors over the weekend. Virgin Orbit faces a potential bankruptcy as early as next week and has hired two firms to develop restructuring plans in the event of insolvency. Billionaire Richard Branson is the rocket maker’s largest stakeholder, with 75 percent ownership. Mubadala, the Emirati sovereign wealth fund, holds the second-largest stake in Virgin Orbit, at 18 percent. Virgin orbit branched off from Virgin Galactic in 2017 and went public in December 2021. It sought to raise $483 million through its process as a special acquisition company (SPAC) but only secured $228 million due to significant redemptions.