Bankrupt Virgin Orbit Holdings Inc. will sell its remaining assets for $3.8 million to Firefly Aerospace Inc., drawing closer to ending its Chapter 11 case.
The assets, which were left over from Virgin Orbit’s previous bankruptcy auction, include “Segment 5" inventories at two production facilities in Long Beach, Calif., according to the proposed order filed Thursday in the US Bankruptcy Court for the District of Delaware.
“Following the auction, in their business judgment and in consultation with the consultation parties, the debtors continued negotiations with several parties and ultimately deemed Firefly Aerospace, Inc. the successful bidder,” Daniel M. Hart, CEO of Virgin Orbit, said in the filing.
Virgin Orbit filed for bankruptcy in April after its satellite launch failed in 2021 and its stock price collapsed. It failed to secure funding to keep operating and cut about 85% of its staff, according to the company.
The company held an auction for the sale of its assets last month, including selling its specialized 747 airplane to Stratolaunch for $17 million and a California rocket factory to Rocket Lab USA Inc. for $16 million, according to court filings.
The company announced in May that it would shut down after it sells all its assets.
The case is Virgin Orbit Holdings, Inc., Bankr. D. Del., No. 1:23-bk-10405, 6/15/23.
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