Virgin Orbit in talks to sell assets

Failed satellite launching company enters 'stalking horse' agreement with Stratolaunch

Virgin Orbit's converted Boeing 747 Cosmic Girl, which carried the LauncherOne rocket. Getty

Bankrupt satellite launching company Virgin Orbit has entered into a "stalking horse" agreement with a buyer of aircraft assets.

A stalking horse bid is often used as a starting offer, or the minimum that would be accepted should other interested parties want to buy assets or a company as a whole.

Stratolaunch, founded in 2011 by billionaire and Microsoft co-founder Paul Allen, has made a $17 million bid for Virgin Orbit's aircraft assets, including Cosmic Girl, the converted Boeing 747 from which the LauncherOne rocket was launched.

Founded by British entrepreneur Richard Branson, Virgin Orbit used a technique known as air launch, in which its LauncherOne rocket was deployed at a high altitude from under the wing of Cosmic Girl.

Mission failure

Virgin Orbit completed its first mission in January 2021. Four further flights followed in 2022.

But in early January this year, the company failed in its first launch attempt from a base in the southern English town of Cornwall.

Virgin Orbit ceased operations within a couple of months.

It filed for Chapter 11 bankruptcy in the US state of Delaware last month. In the filing it listed $243 million in assets.

The company said it had considerable interest in its assets other than the aircraft. The deadline to submit bids for Virgin orbit's assets is on Friday at noon Eastern Standard Time.