Virgin Orbit Creditors Object to Plan Offering Them a ‘Few Cents’

Virgin Orbit Holdings Inc.'s junior creditors have objected to sending to a vote a proposed bankruptcy plan they say pays them only $200,000 against the $106 million they’re owed, but grants Richard Branson-affiliated businesses valuable legal protections.

The bankrupt space-launch company’s restructuring proposal would grant “broad and unjustified” liability releases to lender Virgin Investments Limited and its affiliates, an unsecured creditors committee told the US Bankruptcy Court for the District of Delaware on Friday.

The creditor group said it’s investigating potential claims against Virgin Orbit, its owners, and Virgin Investments.

Virgin Investments is Virgin Orbit’s indirect majority shareholder, and is ...