News by Matthew Horwood/Getty Images
The aftershocks of the SPAC madness that engulfed Wall Street in 2021 continue to be felt in the current market environment, with many investors staying away from companies that post losses. The latest victim is Virgin Orbit (NASDAQ:VORB), which failed to ensure more cash months after a historic mission from British soil ended in failure.
“While we have gone to great lengths to address our financial position and obtain additional financing, ultimately we must do what is best for the business,” Chief Executive Dan Hart said in a statement.
“We believe the cutting-edge launch technology this team has created will have great appeal to buyers as we continue to sell the company. At this stage, we believe the Chapter 11 process represents the best path forward. follow to identify and finalize an efficient and value-maximizing sale.
Without another funding lifeline, Virgin Orbit laid off 675 people, or about 85% of its staff, and suspended operations on March 30. $153.5 million in debt in the Chapter 11 bankruptcy filing.
