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Virgin Orbit takeover deal stalls as unpaid furlough continues
https://www.whatjobs.com/news/usa/us-business-news/virgin-orbit-takeover-deal-stalls-as-unpaid-furlough-continues
By Nithya Bose in US business news, posted March 28, 2023
A deal to save struggling Virgin Orbit has fallen through, meaning staff's unpaid furlough will continue.
The company had been holding negotiations with investor Matthew Brown, but sources say those talks fell through over the weekend.
CEO Dan Hart notified staff about the recent update in a company-wide email.
Read More: Virgin Orbit to strike $200 million deal with investor Matthew Brown
He had intended to inform staff of the company’s operational condition at an all-hands meeting on Monday, March 27 afternoon.
The meeting was rescheduled at the last minute "for no later than Thursday," said Hart in the employee memo.
He wrote: “Our investment discussions have been very dynamic over the past few days, they are ongoing, and not yet at a stage where we can provide a fulsome update.”
Recently, Brown said he was in final talks to invest in the firm.
Read More: Virgin Orbit fights to stay afloat as employees look for new jobs
A source said the investment would have totaled $200 million and gave Brown a controlling stake.
But another source said talks between Virgin Orbit and the Texas-based investor faltered and ended late last week.
Meanwhile, another source said discussions with a different potential buyer fell through on Sunday night.
Hart promised Virgin Orbit’s roughly 750 staff “daily” updates this week.
Most employees remain on an unpaid furlough that Hart announced on March 15.
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Last week, a "small" team of Virgin Orbit staff returned to work in the "first phase" of an "incremental resumption of operations" to prep a rocket for the company's next launch.
On the same day, Hart informed staff that Virgin Orbit was suspending operations.
The company's board authorized a "golden parachute" severance plan for top executives.
It's in case they're laid off “following a change in control” of the company.
Source: CNBC
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