Virgin Orbit’s LauncherOne rocket on display in Times Square, New York.
CNBC | Michael Sheetz
Virgin Orbit is scrambling to secure a funding lifeline and avoid bankruptcy, which could come as early as this week without a deal, CNBC has learned.
The rocket builder paused operations last week and furloughed most of the company, as CNBC first reported, while it sought new investment or a potential buyout.
Virgin Orbit CEO Dan Hart and other senior leadership held daily talks with interested parties through the weekend, according to people familiar with the matter, who asked to remain anonymous in order to discuss internal matters.
During an all-hands meeting last week, Hart told employees that the company hoped to give an update on the situation as soon as Wednesday.
Meanwhile top talent is already hitting the job market: Many of Virgin Orbit’s approximately 750 employees are looking elsewhere for openings. That talent ranges from executives to senior and lead engineers to program managers who are actively searching for and finding new jobs, according to a CNBC analysis.
While a door remains open to avoiding bankruptcy, people close to the situation describe a sense of panic as the company struggles to get a deal done. One possible buyer balked at a proposed sale price of near $200 million, one person told CNBC — a price just below the company’s market value as of Friday’s close.
At the same time, Virgin Orbit is bracing for a potential bankruptcy filing as soon as this week, one person said. Virgin Orbit hired a pair of firms — Alvarez & Marsal and Ducera Partners — to draw up restructuring plans in the event of insolvency, CNBC has learned. Sky News first reported the firms had been hired.
A Virgin Orbit spokesperson declined to comment.
Shares of Virgin Orbit have continued to fall since its pause in operations, with its stock slipping to near 50 cents a share in Monday trading.
The company developed a system for sending satellites into space that uses a modified…
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