Discussion
dukeboy749r said:
skwdenyer said:
jingars said:
SpaceNews: Virgin Orbit lays off most employees.
Notable that Branson is putting in the money to pay severance (>$10m), presumably to try to ensure that the company at some level remains solvent in case something else can be managed.If Branson is canny, he could mothball VO for 12-24 months, save up his pennies, and then have another go. Sure there are others pushing ahead with plans, but the funding climate may be no more favourable to them than to VO.
If so (personally) I think it may be more than 2 years away.
The technical approach is a problem. But if you treat all the money spent so far as sunk cost, then it starts to look viable. If they can get some launches under their belt at that point, they might be able to start generating free cash and develop a heavier-lift capability
That only works if other people hit investment-sourcing problems. If all the startups keep going, however, then VO is dead.
The sad thing is Branson’s timing was spot on. The problem was indeed the technical approach & what seems to have been a crushing risk-aversion on the part of the ex-Boeing CEO.
Branson invested in the wrong person. He needed a visionary (or to be a visionary); instead he backed a corporate suit from fundamentally the wrong background.
VO has reportedly filed for Chapter 11. And Virgin are apparently providing another $30m in (presumably) secured lending to keep VO going whilst they look for a buyer.
It should be borne in mind that debts at VO are (comparatively) very low - looks like almost all of the debt is to Virgin group companies.. And a company can survive in Chapter 11 for years if necessary.
It should be borne in mind that debts at VO are (comparatively) very low - looks like almost all of the debt is to Virgin group companies.. And a company can survive in Chapter 11 for years if necessary.
MartG said:
Which is interesting since it doesn’t really explain how Ch 11 will help 
I’m assuming the objective is to (a) allow the non-Virgin debt to be put on hold / partially written off, (b) stymie any claims, and so on?skwdenyer said:
Which is interesting since it doesn’t really explain how Ch 11 will help I’m assuming the objective is to (a) allow the non-Virgin debt to be put on hold / partially written off, (b) stymie any claims, and so on?
Benefits and Disadvantages of Chapter 11 Bankruptcy I’m assuming the objective is to (a) allow the non-Virgin debt to be put on hold / partially written off, (b) stymie any claims, and so on?For all its challenges, Chapter 11 offers some benefits. Here are some of the most important:
Creditors must stop collection efforts immediately.
The business keeps operating under current ownership and management.
As a debtor-in-possession, the business can borrow money on better terms.
The business can get out from under burdensome leases and other contracts.
The business may be able to sell previously encumbered assets to raise money.
Ultimately, the business may be able to emerge as financially healthy.
Chapter 11’s disadvantages include:
Not shielding sole proprietors from creditors seeking repayment.
It’s expensive, thanks to the need for legal and other professional advice.
Cases can take a long time.
The business may not be able to sell assets, borrow or make other decisions without court approval.
Chapter 11 may not work, leading to the business being forced to close its doors and liquidate.
https://www.forbes.com/advisor/debt-relief/chapter...
Branson has officially announced that Virgin Orbit is now closed.
https://www.bbc.co.uk/news/business-65692302
It looks like most of the assets have been sold off to other parties (at substantially written down values) which means that we may yet see some of the technology brought into use.
https://www.bbc.co.uk/news/business-65692302
It looks like most of the assets have been sold off to other parties (at substantially written down values) which means that we may yet see some of the technology brought into use.
Eric Mc said:
Branson has officially announced that Virgin Orbit is now closed.
https://www.bbc.co.uk/news/business-65692302
It looks like most of the assets have been sold off to other parties (at substantially written down values) which means that we may yet see some of the technology brought into use.
Pretty staggering loss of value. Branson’s mistake was he hired a manager instead of an innovator. Space by the numbers isn’t a viable strategy. This will definitely hurt. Given the tiny realisations, I’m surprised they didn’t wait it out a bit longer.https://www.bbc.co.uk/news/business-65692302
It looks like most of the assets have been sold off to other parties (at substantially written down values) which means that we may yet see some of the technology brought into use.
Gassing Station | Science! | Top of Page | What's New | My Stuff