Virgin Orbit halts operations amid reports of financial struggle

[OneShot]

Brutta notizia se dovesse andare così. Mi sa che Riccardo, il sciür padrun da lì beli braghi bianchi, ha finito lì palanchi!

Virgin Orbit halts operations amid reports of financial struggle

The company hasn’t commented on reports it furloughed its workforce while it seeks emergency funding.

www.euronews.com

Virgin Orbit has paused all its operations amid reports the company is furloughing almost all of its staff amid an attempt to find a funding lifeline.
The satellite launch company confirmed last Thursday it was putting all work on hold, but it didn’t specify for how long.

“Virgin Orbit is initiating a company-wide operational pause, effective March 16, 2023, and anticipates providing an update on go-forward operations in the coming weeks," the company said in a statement.


It said the move was “to conserve cash while the company continues to evaluate all available options”. The company didn’t comment on reports that all but a small number of workers will be temporarily put on unpaid furlough.

A report from Sky News meanwhile states the company is drawing up contingency plans in the event it becomes insolvent. The broadcaster reports Virgin Group is working with restructuring firms in case it cannot secure new funding.
The California-based company was founded in 2017 by Richard Branson, the British billionaire behind the Virgin Group.

It launches small satellites into space, using its LauncherOne rockets which are fired from the air from modified Virgin passenger planes.
This allows the company to operate more flexibly than using fixed launch sites. A mission to launch the first satellites into orbit from Europe failed in January after the rocket’s upper stage prematurely shut down.

The failure was a disappointment for Virgin Orbit and British space officials, who had high hopes that the launch would mark the beginning of more commercial opportunities for the UK space industry.

The company said last month that an investigation found its rocket's fuel filter had become dislodged, causing an engine to become overheated and other components to malfunction. The nine small satellites it carried fell back to Earth and landed in the Atlantic Ocean.

"Our investigation is nearly complete and our next production rocket with the needed modification incorporated is in final stages of integration and test," Virgin Orbit said in its statement on Thursday.

The company has said that its next launch will take place from the Mojave Air and Space Port in California for a commercial customer. It hasn't provided a date.
Virgin Orbit has completed four successful satellite launches so far from California for a mix of commercial and US government defence uses. Other than the UK, it also has ambitions to expand its operations to mainland Europe and South Korea.

 

[East End Ave]

credo che il fallimento dell'ultima missione caro gli sia costato, carissimo.

 

[13947]

Virgin Orbit fails to secure funding, will cease operations and lay off nearly entire workforce

Virgin Orbit CEO Dan Hart gave employees an update in an all-hands meeting on Thursday, according to audio obtained by CNBC.

www.cnbc.com

https://www.sec.gov/ix?doc=/Archives/edgar/data/0001843388/000184338823000063/vorb-20230330.htm

Virgin Orbit fails to secure funding, will cease operations and lay off nearly entire workforce

• Virgin Orbit is ceasing operations “for the foreseeable future” after failing to secure a funding lifeline, CEO Dan Hart told employees during an all-hands meeting Thursday.
• The company will lay off all but 100 employees, according to audio of the 5 p.m. ET meeting obtained by CNBC.
• Shareholders unloaded the stock in extended trading Thursday.

Virgin Orbit is ceasing operations “for the foreseeable future” after failing to secure a funding lifeline, CEO Dan Hart told employees during an all-hands meeting Thursday afternoon. The company will lay off nearly all of its workforce.

“Unfortunately, we’ve not been able to secure the funding to provide a clear path for this company,” Hart said, according to audio of the 5 p.m. ET meeting obtained by CNBC.

“We have no choice but to implement immediate, dramatic and extremely painful changes,” Hart said, audibly choking up on the call. He added this would be “probably the hardest all-hands that we’ve ever done in my life.”

The company will eliminate all but 100 positions, amounting to about 90% of the workforce, Hart said, noting the layoffs will affect every team and department. In a securities filing, the company said the layoffs constituted 675 positions, or approximately 85%.

“This company, this team — all of you — mean a hell of a lot to me. And I have not, and will not, stop supporting you, whether you’re here on the journey or if you’re elsewhere,” Hart said.

Virgin Orbit will “provide a severance package for every departing” employee, Hart said, with a cash payment, extension of benefits, and support in finding a new position — with a “direct pipeline” set up with sister company Virgin Galactic for hiring.

Hart has been giving the company’s employees brief daily updates since Monday, when Virgin Orbit delayed a scheduled all-hands meeting at the last minute. Late-stage deal talks had fallen through with a pair of investors over the weekend, but Hart told staff on Monday that “very dynamic” investment discussions were continuing.

Those investor discussions continued this week, with Hart earlier saying leadership would share any updates “as quickly and transparently as we can,” noting that leaking emails “is against company policy,” according to copies of Hart’s emails from Tuesday and Wednesday obtained by CNBC.
The company this week has been steadily bringing back more of its employees from the operational pause and furlough it began on March 15. It initially resumed some work with a “small team” a week later. Amid the broader pause, Virgin Orbit has been working to finish its investigation into the mid-flight failure of its previous launch, as well as finish preparations on its next rocket.
Shareholders unloaded the stock in extended trading Thursday, with shares selling off more than 40% after the announcement. Virgin Orbit stock closed at 34 cents a share at the end of the regular session, having fallen 82% since the beginning of the year.
A Virgin Orbit representative did not immediately respond to CNBC’s request for comment.

Virgin Orbit developed a system that uses a modified 747 jet to send satellites into space by dropping a rocket from under the aircraft’s wing mid-flight. But the company’s last mission suffered a mid-flight failure, with an issue during the launch causing the rocket to not reach orbit and crash into the ocean.

The company was among a select few U.S. rocket companies to successfully reach orbit with a privately developed launch vehicle. It has launched six missions since 2020, with four successes and two failures.

It has been looking for new funds for several months, with majority owner Sir Richard Branson unwilling to fund the company further.

Virgin Orbit was spun out of Branson’s Virgin Galactic in 2017 and counts the billionaire as its largest stakeholder, with 75% ownership. Mubadala, the Emirati sovereign wealth fund, holds the second-largest stake at 18%.

The company previously hired bankruptcy firms to draw up contingency plans in the event it was unable to find a buyer or investor. Branson has first priority over Virgin Orbit’s assets, as the company raised $60 million in debt from the investment arm of Virgin Group.

On the same day that Hart told employees that Virgin Orbit was pausing operations, its board of directors approved a “golden parachute” severance plan for top executives, in case they are terminated “following a change in control” of the company.

 

[Fewwy]

Non avevo capito niente: io pensavo che Virgin Orbit e Virgin Galactic fossero la stessa cosa.

 

[East End Ave]

Non avevo capito niente: io pensavo che Virgin Orbit e Virgin Galactic fossero la stessa cosa.

Honestly? Me too. But quite confusing, isn't it?

 

[13947]

Non avevo capito niente: io pensavo che Virgin Orbit e Virgin Galactic fossero la stessa cosa.

Honestly? Me too. But quite confusing, isn't it?

Come modello potrebbe essere comparato a quello Easy di Stelios.
Spaziano entrambi da hotel a palestre, e molto altro, tramite Virgin Group Ltd. una e EasyGroup Ltd l'altra.
Le compagnie aeree sono forse la parte più nota, almeno in Italia.

 

[13900]

Lo spazio e' duro, niente da fare, e i margini sono molto corti. Virgin Orbit ha avuto un po' di ritardi, almeno un lancio non riuscito e si trova a lavorare in un mercato che, all'improvviso, e' diventato veramente competitivo (ci sono almeno 4-5 lanciatori "piccoli", piu' l'opportunita' di fare rideshare).

 

[13947]

Virgin Orbit files for Chapter 11 bankruptcy protection in the U.S.

Virgin Orbit filed for Chapter 11 bankruptcy protection after failing to secure a funding lifeline.

www.cnbc.com

Virgin Orbit files for Chapter 11 bankruptcy protection in the U.S.

• Virgin Orbit on Tuesday filed for Chapter 11 bankruptcy protection in the U.S. after failing to secure a funding lifeline.
• It comes days after CNBC obtained audio of Virgin Orbit CEO Dan Hart telling employees during an all-hands meeting that the company was ceasing operations “for the foreseeable future.”
• The company’s last mission suffered a mid-flight failure, with an issue during the launch causing the rocket to not reach orbit and crash into the ocean.

Virgin Orbit on Tuesday filed for Chapter 11 bankruptcy protection in the U.S. after failing to secure a funding lifeline.
The California-based satellite launch company lodged the filing in the U.S. Bankruptcy Court in the District of Delaware and is looking to sell its assets.

It comes after CNBC obtained audio of Virgin Orbit CEO Dan Hart telling employees during an all-hands meeting last week that the company was ceasing operations “for the foreseeable future.” The firm also said it would lay off nearly all of its workforce.
“While we have taken great efforts to address our financial position and secure additional financing, we ultimately must do what is best for the business,” Hart said in a statement Tuesday.
“We believe that the cutting-edge launch technology that this team has created will have wide appeal to buyers as we continue in the process to sell the Company. At this stage, we believe that the Chapter 11 process represents the best path forward to identify and finalize an efficient and value-maximizing sale,” he added.
Virgin Orbit said it was focused on a swift conclusion to its sale process to provide clarity on the future of the firm.
Virgin Orbit said a commitment from Virgin Investments had allowed the company to secure $31.6 million in new money through “debtor-in-possession” financing. This process, sometimes known as DIP financing, refers to funding for businesses that have filed for Chapter 11 bankruptcy protection to allow them to keep operating.

What happened?
Virgin Orbit developed a system that uses a modified 747 jet to send satellites into space by dropping a rocket from under the aircraft’s wing mid-flight.
The company’s last mission suffered a mid-flight failure, with an issue during the launch preventing the rocket from reaching orbit. It crashed into the ocean.
Virgin Orbit is among a select few U.S. rocket companies to successfully achieve orbit with a privately developed launch vehicle. It has launched six missions since 2020, counting four successes and two failures.
It has been looking for new funds for several months, with majority owner Richard Branson unwilling to fund the company further.
Branson founded the company in 2017 and owns a 75% interest. Abu Dhabi sovereign wealth fund Mubadala holds the second-largest stake at 18%.
The company began commercial services in 2021 and began publicly trading on the Nasdaq stock exchange after a so-called SPAC merger. The deal saw the company valued at nearly $4 billion at the time.
It is a markedly different picture at present. Virgin Orbit had a market value of roughly $65 million, according to the Monday closing price.
“Today my thoughts and concerns are with the many talented teammates and friends now finding their way forward who have been committed to the mission and promise of all that Virgin Orbit represents,” CEO Dan Hart said.
“I am confident of what we have built and hopeful to achieve a transaction that positions our Company and our technology for future opportunities and missions,” he added.

 

[Seaking]

Ma dai? Non sapevo ci fosse Mubadala anche dietro questa avventura.
Un'altra sòla dopo quella di Piaggio Aerospace...

 

[OneShot]

Il viaggio spaziale in mongolfiera che può mettere in crisi i terrapiattisti, si parte nel 2025: quanto costerà (cena di lusso inclusa)

Secondo la startup francese si tratta del viaggio spaziale più economico sul mercato

www.open.online

 

[13947]

Virgin Orbit: Branson’s rocket dream ends after mission failure

The British billionaire's bankrupt satellite launch firm had been looking to boost its finances.

www.bbc.com

Virgin Orbit: Branson’s rocket dream ends after mission failure

Sir Richard Branson's rocket company Virgin Orbit has shut down, just months after a major mission failure.
The firm's converted jet and leases on properties have been sold for $36m (£29m), just a fraction of the $3.7bn the company was valued at in 2021.
In March, Virgin Orbit said it would make most of its workforce redundant after failing to secure new investment.
The California-based firm filed for bankruptcy protection in the US early last month.
It came just weeks after the company paused operations in an apparent attempt to shore up its finances.
Earlier this year, a Virgin Orbit rocket failed to complete the first ever satellite launch from UK soil.

Virgin Orbit's headquarters, rocket factory and equipment were bought by rival start-up, Rocket Lab, for $16.1m.
Its converted Boeing 747 jet, called Cosmic Girl, was sold for $17m to aerospace firm Stratolaunch.
Another space company, Launcher Inc, bought Virgin Orbit's launch site and lease in the Mojave desert for $2.7m.
Virgin Orbit, which was founded in 2017, never turned a profit as a public company.
It developed rockets to carry small satellites and is part of Sir Richard's business empire, which includes airline Virgin Atlantic and space tourism company Virgin Galactic.
In January, Virgin Orbit attempted the first ever satellite mission launched from UK soil, which ended in failure.

The company's LauncherOne rocket reached space but fell short of reaching its target orbit.
The mission was billed as a milestone for UK space exploration. It had been hoped it would mark a major step forward to fulfilling an ambition to turn the country into a global player - from manufacturing satellites to building rockets and creating new spaceports.

 

[13947]

Stratolaunch ha effettuato il primo volo del 747 con la nuova livrea, che per fortuna non è finito dal lattoniere / lattiniere.

Dopo alcune modifiche, dovrebbe entrare in servizio nella prima metà del 2024.

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The Spirit of Mojave returns to its home at Mojave Air & Space Port

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