As a company, Virgin Orbit has a definite goal, and that is to deliver small commercial satellites into Earth orbit.
Space technology company Virgin Orbit Holdings Inc (NASDAQ:VORB) is facing one of the toughest financial straits in its history and could file for bankruptcy if it fails to secure funding as soon as possible. according to fox news reportscompany owned by sir richard bransonVirgin Group has contracted two known restructuring firms, Alvarez & Marsal (A&M) and Ducera, on alternative plans should it fail to commit fresh funding soon.
The company has had to halt its operations following what has been described as a major financial strain. While the reasons for the halt are unclear, the firm said it is working on some key aspects of its operations.
“Virgin Orbit is initiating a company-wide operational pause, effective March 16, 2023, and looks forward to providing an update on go-ahead operations in the coming weeks,” a Virgin Orbit spokesperson said last week. Testing is nearly complete and our next production rocket is in the final stages of integration and testing with necessary modifications.”
The stress in the global financial ecosystem is undeniably taking its toll on the California-based company. Virgin Orbit began to see major existential crises in its wake after a failed test launch from the United Kingdom back in January. As informed of At the time, the company was expected to orbit about nine satellites in space, per Coinspeaker, and the failure highlighted related events in the company’s short history.
The company’s shares fell short at the time and the company’s valuation has seen a steady decline since being listed on the NASDAQ through a special purpose acquisition company (SPAC). At the time of listing, it was valued at $3.7 billion, but at the time of writing, its valuation has also come down to just $217 million.
Is Virgin Orbit on the verge of bankruptcy?
As a company, Virgin Orbit has a definite goal, and that is to deliver small commercial satellites into Earth orbit. Since its inception, it has been able to lift more than 33 satellites using a customized Boeing 747 layout designed for Virgin Atlantic.
While it is believed to be more powerful than its model Virgin Galactic Holdings Inc (NYSE: SPCE) from which it was inspired, recent events as it relates to mission failures and delays have cast considerable doubt over its future.
Now that firms require immediate cash injections to remain solvent, failure to obtain these can lead to bankruptcy, the latter of which restructuring firms are now working to help navigate. The news of people interested in investing in the company remained under wraps, however, Fox News sources confirmed that one of the company’s shareholders, boeing company (NYSE:BA) isn’t among the latest crop of investors who could help salvage the smaller firm.
Benjamin Godfrey is a blockchain enthusiast and journalist who loves to write about real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies drives his contributions to well-known blockchain-based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
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