Virgin Orbit, the satellite launch company founded by billionaire Richard Branson, 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. The bid does not prevent going concern bidders from making bids for all its assets. The deadline to submit bids for its assets is 12 p.m. ET (1600 GMT) on May 19.
Virgin Orbit was spun off from space tourism firm Virgin Galactic in 2017 and sends satellites into orbit using rockets launched from a modified Boeing (BA) 747. Stratolaunch, founded by late billionaire and Microsoft Corp (MSFT) co-founder Paul Allen, has conducted several tests of its aircraft designed to carry air-launch-to-orbit rockets and hypersonic vehicles.
The company filed for Chapter 11 bankruptcy protection in April after struggling to secure long-term funding following a failed satellite launch in January. With the stalking horse agreement, Virgin Orbit is hoping to find a buyer for its assets and secure a better future for the company.