It’s been a turbulent week for Virgin Orbit, headquartered out of Long Beach California. The company suspended all operations and furloughed most of its workforce for a week as it sought relief by raising funds to rescue its rocket-flying business, according to sources close to the matter on March 15.
During a 5 p.m. EDT meeting that day, company higher-ups explained that employees could cash in their paid time off as the furlough would be unpaid with a small team remaining in place continuing to work.
During the third quarter of 2022, Virgin Orbit reported a loss of $42.9 million as cash demands continued, with fourth quarter funding coming from an investment arm of its founder Richard Branson’s parent company, Virgin Group.
Notes in the amounts of $25 million, an unsecured convertible note secured in November of 2022, along with another $30 million in senior secured notes in December 2022 and January 2023 gives “first priority” access to assets by Branson’s parent company.
Spaceport Cornwall
Earlier this year on Jan. 23, from a runway at Spaceport Cornwall in the United Kingdom dubbed the “world’s newest space launch center,” the customized 747 “Cosmic Girl,” LauncherOne’s carrier aircraft, took off.
After releasing the rocket, LauncherOne successfully reached space. However, the mission ultimately ended abruptly when the second stage experienced an anomaly during firing, resulting in it being unable to reach orbit.
The mission was unable to reach any significant achievements that Virgin Galactic and its partners — the UK Space Agency, the Royal Air Force, the Civilian Aviation Authority, the U.S. Federal Aviation Administration and the National Reconnaissance Office — were hopeful for other than achieving a historic first attempt at a space launch from UK soil.
Overall, that was the sixth flight of the 70-foot (21.3 meters) LauncherOne since May of 2020. While its first flight failed, the next four were successful. It has the ability to send up to 1,100 pounds (500 kilograms) into low Earth orbit.
Reconstruction partners
Virgin Group has connected with Alvarez & Marsal and Ducera, two firms specializing in reconstruction, as a measure of caution/alternative, as Virgin Orbit continues to court would-be investors to revive operations for the company.
Richard Branson’s holding company owns 75% of Virgin Orbit with shares traded on the Nasdaq exchange in New York City, which saw share value plunge after the failed mission in Cornwall during the first quarter of 2023.
As Virgin Orbit continues to seek funding for the restart, Dan Hart, the company’s chief executive, acknowledges that without an injection of cash, launching future missions is uncertain.
Furlough update from Tuesday evening:
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