Virgin Orbit, the beleaguered launch provider and sister company of Virgin Galactic, announced that they have filed for Chapter 11 of the US Bankruptcy Code. Under a Chapter 11, a company can borrow new money with court approval. Virgin Investments Limited has offered debtor-in-possession financing that could help Virgin Orbit maximize the value of its assets in order to effectuate a quick sale of the business.

“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,” said Dan Hart, CEO of Virgin 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.”

The funding, to the total of $31.6 million, will help protect Virgin Orbit’s operations as they move forward with the process of selling the company. The money will be used to pay employee wages and benefits and to pay suppliers and vendors to the “fullest extent possible.”

“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,” said Hart. “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.”

Virgin Orbit has stated that while they proceed through the sale of the company, they will work to find a buyer that can fulfill the needs of their current customers. The company had been preparing for their next launch from Mojave, California when they were hit with their current financial woes.

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