Virgin Orbit is reportedly working with two restructuring firms to plan for a potential insolvency should it not be able to raise the funds it needs to restart operations.
According to the British version of Sky News, the business is still “aiming” to secure additional capital this week, though prior investor Boeing is understood not to be involved in rescue talks.
The news comes after the 747 rocket launch business paused its operation and reportedly stood down staff last week as it struggled to deal with the fallout from its bodged launch in the UK earlier this year.
Virgin Orbit is the successor to a project begun by Virgin Galactic and uses a modified Boeing 747-400 aircraft to launch payloads into space from mid-air. It had targeted launches from Toowoomba in Queensland within three years.
However, on Thursday, Bloomberg reported nearly all Virgin Orbit staff were furloughed for the week in an attempt to buy time to finalise a new investment plan.
“Virgin Orbit is initiating a company-wide operational pause, effective March 16, 2023, and anticipates providing an update on go-forward operations in the coming weeks,” a spokesperson confirmed.
It follows the high-profile failure of its launch in Cornwall, in the south-west of England, thought to have been caused by a fuel filter that dislodged mid-launch.
January’s launch was the first outside the company’s home airport in the Mojave Desert, California, and received significant backing from the British government.