The move to file for Chapter 11 bankruptcy protection — a form of bankruptcy which generally allows for the reorganisation of a business’ affairs, assets, and debts — was made “in order to effectuate a sale of the business,” according to a statement published by the company.

To facilitate and fund the sale process and also allow the business to keep operating while a buyer is sought, Virgin Investments Limited is supplying Virgin Orbit with $31.6 million USD in debtor-in-possession financing.

“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,” the statement also read. “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.”

On the announcement of the bankruptcy filing, Virgin Orbit’s CEO, Dan Hart, said: “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.”

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The news of bankruptcy is the latest in a series of adverse events for the rocket company, which launches satellite-containing rockets from underneath modified Boeing 474 planes.

Just days ago, DIGIT reported on the news that Virgin Orbit had laid off about 85% of its staff — totalling around 675 jobs, leaving roughly 100 staff in place.

Before that, the company initiated a “company-wide operational pause” in March, consequently placing staff on furlough.

In January, the company’s high-profile satellite launch failure at Spaceport Cornwall — which was supposed to be a historic moment for the UK, representing the first time a satellite space mission had been launched from UK soil — sent its stock price into collapse.

However, the Chapter 11 bankruptcy protection filing could help to turn Virgin Orbit’s free fall around — should a buyer be found.