JAKARTA - Virgin Orbit, a satellite reduction company founded by billionaire Richard Branson has just filed for bankruptcy protection in the United States (US), after seeking funding to support its business.
The company based in Long Beach, California, USA filed it at the US Bankruptcy Court for Delaware District.
"We believe that the Chapter 11 process is the best way forward to identify and complete efficient sales and maximize value," said Virgin Orbit CEO Dan Hart in a statement.
With the bankruptcy protection, Virgin Orbit can continue to do business while restructuring its debt.
"While we have made great efforts to overcome our financial position and secure additional financing, in the end we have to do our best for this business," Hart said.
The company registered assets of around US$243 million (Rp3.6 trillion) and total debt of US$153.5 million (Rp2.2 trillion) as of September 30 in the filing. Virgin Orbit will look for buyers for its assets.
"We believe the cutting-edge launch technology created by this team will have a broad appeal for buyers as we continue the process of selling the company," Hart explained.
The submission comes less than a week after the company announced it had laid off 85 percent of its workforce, leaving about 100 employees to run the remaining business.
The employee cut was aimed at reducing costs as they were unable to obtain additional funds, as quoted by CNN International, Wednesday, April 5.
Founded in 2017, Virgin Orbit focused on businesses to build small rockets. Its first work was called LauncherOne, which can deliver light satellites into orbit quickly and cheaply. The rocket took off from the modified Boeing 747 aircraft.
However, Virgin Orbit had a problem last January when one of its rockets failed to orbit because the engine was too hot. It was the company's first attempt to launch a satellite from British soil, which had previously completed four successful launches from California.
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