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Virgin Orbit, billionaire Richard Branson's space company that launches rockets from a plane in full flight, has announced it has filed for bankruptcy and is looking for a buyer. The company's last launch failed, leaving it in turbulent financial waters.

In recent years, more and more companies have been trying to make space travel more accessible. But while some are hugely successful in doing so, others fail to make their founders' dreams come true.

In the news: Virgin Orbit today filed for bankruptcy in the United States, where the company is based.

  • It is the typical US Chapter 11 arrangement, which provides protection from creditors.
  • The aerospace company is now looking for a buyer. It values its assets at $243 million and reports debts of up to $153 million, according to news agency .

The cause: a failed launch.

  • Virgin Orbit's business model (not to be confused with Virgin Galactic, which sends tourist flights into space) is to put rockets into orbit, for example, to place satellites. The peculiarity: these rockets are not launched from the ground, but are launched into the air with the help of a plane.
  • The company's last launch in January, failed. The rocket ultimately could not be put into orbit and the satellites on board were lost.
  • Virgin Orbit had conducted four successful launches before that.

Massive layoffs

The context: a difficult time for Virgin Orbit.

  • Since the failed launch, things have deteriorated for the company, which was already in financial trouble.
  • To continue operations, it sought investors. Matthew Brown, a Texas venture capitalist whose holdings include SpaceX and Rocket Lab, wanted to $200 million . But last week it turned out that the talks came to nothing.
  • In late March, Virgin Orbit had to 85 percent of its workforce, 750 people.

(as/evb)

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