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Virgin Orbit fights to stay afloat as employees look for new jobs

Virgin Orbit

Virgin Orbit strives to stay afloat as employees look for new jobs

Virgin Orbit is trying to find a funding lifeline and to try to stave off bankruptcy, which could be imminent if a deal isn't struck.

The company's top talent is already on the job market, with many of its 750 employees looking for other opportunities.

Executives, senior and lead engineers, and program managers are among those actively looking for and finding new jobs as the company's future remains uncertain.

Read More: Virgin Orbit furloughs employees for a week as it pauses operations

The rocket manufacturer halted operations last week and furloughed most employees as it sought new investment or a prospective buyout.

Now, sources say CEO Dan Hart and other top executives spoke with interested parties daily over the weekend.

Hart told staff at an all-hands meeting last week that the business wanted to provide an update on the issue as soon as tomorrow (Wednesday, March 22).

Read More: Disney managers asked to make lists of staff to be cut as 4,000 layoffs loom

While the possibility of averting bankruptcy remains open, sources close to the matter describe a sense of fear as the firm works to reach an agreement.

A source said one potential buyer turned down a proposed sale price of about $200 million, just below the company's market value as of Friday’s close.

In the meantime, Virgin Orbit is reportedly gearing up for a possible bankruptcy filing shortly this week. 

In the event of insolvency, Virgin Orbit engaged Alvarez & Marsal and Ducera Partners to develop restructuring strategies.

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Virgin Orbit shares have kept falling since the company's halt in operations, with the stock closing at $0.52 a share on Monday.

It created a system for sending satellites into space that uses a modified 747 jet that releases a rocket from under the aircraft's wing in mid-flight.

Its most recent mission failed mid-flight, and its rocket did not reach orbit.

A Virgin Orbit spokesperson declined to comment.

Source: CNBC

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