Virgin Orbit enters "stalking horse" bid to sell aircraft assets for $17 million

(Reuters) - Bankrupt satellite launch company Virgin Orbit said on Tuesday it has entered into a "stalking horse" agreement with Stratolaunch to sell mainly its aircraft assets, including the "Cosmic Girl" carrier aircraft, for $17 million in cash.

A stalking horse bid is used as a starting bid or minimally accepted offer that other interested bidders must surpass if they want to buy the company.

In a court filing, Virgin Orbit said the bid does not prevent going concern bidders from making bids for all its assets, including the ones which Stratolaunch is bidding for.

(Reporting by Shubham Kalia in Bengaluru; Editing by Kim Coghill)