Richard Branson $3.2 Billion Virgin Orbit Files for Chapter 11 Bankruptcy, Virgin Investments to Provide $31.6 Million to Support Ongoing Operations & Maximize Value for Business
7th April 2023 | Hong Kong
Richard Branson $3.2 billion Virgin Orbit has filed for Chapter 11 Bankruptcy (4/4/23), with Virgin Investments to provide $31.6 million to support ongoing operations and maximize value for business. In 2021 August, Virgin Orbit, the responsive launch and space solutions company spinoff from Virgin Galactic founded by billionaire Richard Branson, had announced to go public on NASDAQ in a $3.2 billion SPAC merger with NextGen Acquisition Corp. The combined company will receive $483 million in cash proceeds, including $383 million of cash held in the trust account of NextGen and a $100 million fully committed PIPE (Private Investment in Public Equity), valuing the company at an enterprise value of $3.2 billion. The combined company will retain Virgin Orbit name and is expected to be listed on Nasdaq under the ticker symbol “VORB.” Virgin Orbit existing shareholders are Virgin Group, Mubadala Investment (Manages $243.4 billion for Government of Abu Dhabi) and management and employees. More info below.
“ Richard Branson $3.2 Billion Virgin Orbit Files for Bankruptcy, Virgin Investments to Provide $31.6 Million to Support Ongoing Operations & Maximize Value for Business “
Richard Branson $3.2 Billion Virgin Orbit Files for Chapter 11 Bankruptcy, Virgin Investments to Provide $31.6 Million to Support Ongoing Operations & Maximize Value for Business
4th April 2023 – Virgin Orbit Holdings, Inc. and its U.S. subsidiaries, (the “Company” or “Virgin Orbit”), a responsive space launch provider, announced today that it commenced a voluntary proceeding under Chapter 11 of the U.S. Bankruptcy Code (“Chapter 11”) in the United States Bankruptcy Court in the District of Delaware in order to effectuate a sale of the business. With the support of Virgin Investments Limited in the form of debtor-in-possession (“DIP”) financing, Virgin Orbit intends to use the Chapter 11 process to maximize value for its business and assets.
This announcement follows the Company’s previous statement about reducing its workforce due to an inability to raise sufficient out-of-court capital to continue operating its business at the current run-rate.
“The team at Virgin Orbit has developed and brought into operation a new and innovative method of launching satellites into orbit, introducing new technology and managing great challenges and great risks along the way as we proved the system and performed several successful space flights – including successfully launching 33 satellites into their precise orbit. 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. 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,” said Dan Hart, CEO of Virgin Orbit.
“I’m incredibly grateful and proud of every one of our teammates, both for the pioneering spirit of innovation they’ve embodied and for their patience and professionalism as we’ve managed through this difficult time. 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. 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.”
To help fund the process and protect its operations, the Company has received a commitment from Virgin Investments Limited for $31.6 million in new money DIP financing. Upon approval from the Bankruptcy Court, the DIP financing is expected to provide Virgin Orbit with the necessary liquidity to continue operating as it furthers the marketing process commenced pre-petition to sell the Company and seek a value-maximizing transaction for the business and its assets.
The Company is focused on a swift conclusion to its sale process in order to provide clarity on the future of the Company to its customers, vendors, and employees. In the interim, Virgin Orbit will continue operating in the ordinary course as a “debtor-in-possession” under the jurisdiction of the bankruptcy court and in accordance with the applicable provisions of the U.S. Bankruptcy Code. Virgin Orbit has filed customary motions requesting that the Court authorize the Company’s ability to its use cash on hand and access the DIP financing to support this process, including payment of remaining employee wages and benefits without interruption. The Company intends to pay suppliers and vendors to the fullest extent possible pursuant to normal terms for goods and services provided on or after the filing date. The Company is also committed to working with its customers as it tries to find a buyer that will be able to continue to fulfill their needs.
For more information about Virgin Orbit’s Chapter 11 case, please visit https://cases.ra.kroll.com/virginorbit/ or contact Kroll, the Company’s noticing and claims agent, at +1 833-570-5269 (Toll Free), +1 646-440-4773 (International) or by e-mail at [email protected].
Virgin Orbit is represented by Latham & Watkins as restructuring counsel, Young Conaway Stargatt & Taylor, LLP as local restructuring counsel, Alvarez & Marsal as restructuring advisor, and Ducera as investment banker. Virgin Group is represented by Davis Polk & Wardwell as restructuring counsel, Morris, Nichols, Arsht & Tunnell as local restructuring counsel, and FTI Consulting as financial advisor.
About Virgin Orbit
Virgin Orbit Holdings, Inc (Nasdaq: VORB) operates one of the most flexible and responsive space launch systems ever built. Founded by Sir Richard Branson in 2017, the Company began commercial service in 2021, and has already delivered commercial, civil, national security, and international satellites into orbit. Virgin Orbit’s LauncherOne rockets are designed and manufactured in Long Beach, California, and are air-launched from a modified 747-400 carrier aircraft that allows Virgin Orbit Holdings, Inc to operate from locations all over the world in order to best serve each customer’s needs. Learn more at www.virginorbit.com
Richard Branson $3.2 Billion Virgin Orbit Nears Bankruptcy with Market Value of $66 Million, Reduces Headcount by 85% & Unable to Raise New Funds
1st April 2023 – Richard Branson $3.2 billion Virgin Orbit is nearing bankruptcy with market value of $66 million (Nasdaq, 31/3/23), announcing to reduce headcount by 85% (30/3/23) and had been unable to raise new funds. In 2021 August, Virgin Orbit, the responsive launch and space solutions company spinoff from Virgin Galactic founded by billionaire Richard Branson, had announced to go public on NASDAQ in a $3.2 billion SPAC merger with NextGen Acquisition Corp. The combined company will receive $483 million in cash proceeds, including $383 million of cash held in the trust account of NextGen and a $100 million fully committed PIPE (Private Investment in Public Equity), valuing the company at an enterprise value of $3.2 billion. The combined company will retain Virgin Orbit name and is expected to be listed on Nasdaq under the ticker symbol “VORB.” Virgin Orbit existing shareholders are Virgin Group, Mubadala Investment (Manages $243.4 billion for Government of Abu Dhabi) and management and employees. More info below.
“ Richard Branson $3.2 Billion Virgin Orbit Nears Bankruptcy with Market Value of $66 Million, Reduces Headcount by 85% & Unable to Raise New Funds “
Richard Branson Virgin Orbit Goes Public on NASDAQ in $3.2 Billion SPAC Merger with NextGen Acquisition
27th August 2021 – Virgin Orbit, the responsive launch and space solutions company spinoff from Virgin Galactic founded by billionaire Richard Branson, is going public on NASDAQ in a $3.2 billion SPAC merger with NextGen Acquisition Corp. The combined company will receive $483 million in cash proceeds, including $383 million of cash held in the trust account of NextGen and a $100 million fully committed PIPE (Private Investment in Public Equity), valuing the company at an enterprise value of $3.2 billion. The combined company will retain Virgin Orbit name and is expected to be listed on Nasdaq under the ticker symbol “VORB.” Virgin Orbit existing shareholders are Virgin Group, Mubadala Investment (Manages $243.4 billion for Government of Abu Dhabi) and management and employees. Existing Virgin Orbit shareholders are expected to retain ownership of approximately 85% of the combined company, NextGen’s public shareholders to own 10% of the combined company, PIPE investors and SPAC sponsor to own 3% and 2%, respectively. On 11th July 2021, founder of Virgin Airlines Sir Richard Branson had went on a spaceflight on Virgin Galactic Unity spaceplane on a 1.5 hours flight. Read More: Billionaires Richard Branson and Jeff Bezos with $216 Billion Combined Wealth Starts Spaceflight Tourism
SPAC (Special Purpose Acquisition Company) is also popularly referred to as a blank cheque company, that allows the listed company without any existing businesses to raise capital through an IPO (initial public offering), and thereafter use the capital to invest into companies.
Virgin Orbit
Virgin Orbit has developed a proprietary air-launch technology, coupled with world-class manufacturing infrastructure and a proven team to transform space access for a diverse and global customer base. Since its founding in 2017, Virgin Orbit has developed the world’s first air-launched, liquid-fueled launch system.
The Company’s most recent successful launch – conducted on June 30, 2021 – precisely delivered satellites for commercial and national security customers from the US and abroad directly into their target orbits. In January 2021, the Company successfully launched satellites for NASA.
On 11th July 2021, founder of Virgin Airlines Sir Richard Branson had went on a spaceflight on Virgin Galactic Unity spaceplane on a 1.5 hours flight. Read More: Billionaires Richard Branson and Jeff Bezos with $216 Billion Combined Wealth Starts Spaceflight Tourism
Related:
- Italian Luxury Brand Ermenegildo Zegna Goes Public on NYSE in $2.5 Billion SPAC Merger
- Grab $39.6 Billion SPAC IPO Delayed to Q4 2021, Pending Accounts Clearance
- Southeast Asia Grab Goes Public on Nasdaq at $39.6 Billion Valuation with SPAC Merger
- Singapore Exchange Seeks Feedback on SPACs Listing at SGD 300 Million Market Capitalization
- WeWork Goes Public at $9 Billion Valuation with SPAC Merger
- Facebook co-Founder Eduardo Saverin B Capital Creates SPAC to Raise $300 Million on NASDAQ
Sir Richard Branson, the Founder of Virgin Orbit:
“The Virgin Orbit team has proven its ability to create new ideas, new approaches, and new capabilities. They are building on the incredible foundation of their rapid transition into successful commercial launch operations to find new ways to solve big problems that uplift our customers’ amazing ideas, again and again. I’m very excited we are taking Virgin Orbit public, with the support of our partners at NextGen and our other wonderful investors. It’s another milestone for empowering all of those working today to build space technology that will positively change the world.”
Dan Hart, the CEO of Virgin Orbit:
“We’ve built Virgin Orbit in order to change the business of satellite launch and to open space for everyone, globally. Whether it’s engaging with world leaders at the G7 Summit or seeing the smiles on the faces of our international community of customers after our most recent launch, our mission gets more exciting with every step we take. Our success in launch has driven the business forward, and now we expect this investment will enable us to build on our R&D efforts and our incredible team. We are driving innovation with world-class design and advanced manufacturing capabilities, our unrivaled mobility of launch, and our exciting space solutions services.”
George Mattson and Greg Summe, the Co-Founders of NextGen:
“We are delighted that our search for a great company, with strong organic growth in a large and growing market, disruptive technology and a world class management team has led to our partnership with Virgin Orbit. The space economy is developing rapidly and Virgin Orbit is well positioned to benefit through its ability to competitively launch at any time, from any place on Earth, to any orbit and inclination. This is a truly unique and differentiating capability. We have worked with Sir Richard and the Virgin Group on various projects, including Virgin Galactic, over the last few years and admire their vision and commitment as they have built Virgin Orbit from an idea to a commercial reality. We look forward to leveraging our industry and financial experience, along with our public company leadership and governance experience to help Virgin Orbit deliver the next chapter of its exciting journey as a public company.”
Abdulla Shadid, Executive Director, Growth & M&A at Mubadala:
“Virgin Orbit is a game changer for the small satellite launch and space solutions industry and its listing is expected to be yet another milestone in its continuing success story. Our investment in Virgin Orbit since its inception is a reflection of our confidence in the company’s ability to carve out a leading role in this sector. It also complements the broad objectives of the UAE’s national space strategy, as reflected in the recent successful “Hope” satellite mission to Mars.”
About Virgin Orbit
Virgin Orbit builds and operates one of the most flexible and responsive satellite launchers ever invented: LauncherOne, a dedicated launch service for commercial and government-built small satellites. LauncherOne rockets are designed and manufactured in Long Beach, California, and are air-launched from a modified 747-400 carrier aircraft, Cosmic Girl, which allows Virgin Orbit to operate from locations all over the world in order to best serve each customer’s needs.
In just a span of four years since its creation in 2017, Virgin Orbit has developed a proprietary air-launch technology, coupled with world-class manufacturing infrastructure and a proven team to transform space access for a diverse and global customer base.
About NextGen Acquisition Corp
NextGen Acquisition Corp. II is a blank check company whose business purpose is to effect a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. NextGen is led by George Mattson, a former Partner at Goldman, Sachs & Co., and Gregory Summe, former Chairman and CEO of Perkin Elmer and Vice Chairman of the Carlyle Group. NextGen is listed on Nasdaq under the ticker symbol “NGCA.” For more information, please visit www.nextgenacq.com.
About Virgin Group
The Virgin Group is a leading international investment group and one of the world’s most recognized and respected brands. Created in 1970 with the birth of Virgin Records, the Virgin Group has gone on to invest in, incubate, and grow a number of successful businesses in the private and public markets. The Virgin Group has expanded into many sectors since its inception, driven by Sir Richard’s ambition to create the world’s most irresistible brand. These sectors include travel & leisure, financial services, health & wellness, technology & internet-enabled, music & entertainment, media & mobile, space, and renewable energy. The Virgin Group has built significant expertise across these sectors, which it has also successfully applied to investments in non-Virgin branded businesses in which it has seen the opportunity to generate attractive financial returns. https://www.virgin.com.
About Mubadala
Mubadala Investment Company manages a global portfolio aimed at generating sustainable financial returns for the Government of Abu Dhabi. Mubadala’s $243.4 billion (AED 894 billion) portfolio spans six continents with interests in multiple sectors and asset classes. Mubadala leverages deep sectoral expertise and long-standing partnerships to drive sustainable growth and profit, while supporting the continued diversification and global integration of the economy of the United Arab Emirates. Headquartered in Abu Dhabi, Mubadala has offices in London, Rio de Janeiro, Moscow, New York, San Francisco and Beijing. For more information about Mubadala Investment Company, please visit: www.mubadala.com.
Sign Up / Register
Caproasia Users
- Manage $20 million to $3 billion of assets
- Invest $3 million to $300 million
- Advise institutions, billionaires, UHNWs & HNWs
Caproasia Platforms | 11,000 Investors & Advisors
- Caproasia.com
- Caproasia Access
- Caproasia Events
- The Financial Centre | Find Services
- Membership
- Family Office Circle
- Professional Investor Circle
- Investor Relations Network
Monthly Roundtable & Networking
Family Office Programs
The 2025 Investment Day
- March - Hong Kong
- March - Singapore
- July - Hong Kong
- July - Singapore
- Sept- Hong Kong
- Sept - Singapore
- Oct- Hong Kong
- Nov - Singapore
- Visit: The Investment Day | Register: Click here
Caproasia Summits
- The Institutional Investor Summit
- The Investment / Alternatives Summit
- The Private Wealth Summit
- The Family Office Summit
- The CEO & Entrepreneur Summit
- The Capital Markets Summit
- The ESG / Sustainable Investment Summit
