After failing to get the necessary finance to continue operations and laying off roughly 85% of its workforce, Virgin Orbit Holdings filed for bankruptcy.

After failing to get the necessary finance to continue operations and laying off roughly 85% of its workforce, the satellite launch company affiliated with British entrepreneur Richard Branson, Virgin Orbit Holdings, filed for bankruptcy.

The corporation claimed assets of $243 million and debt totalling $153.5 million.

The action highlights the steep decline that followed the high-profile launch failure in January and the stock price crash. In March, Virgin Orbit suspended operations as it looked for extra funding, and it later it laid off around 671 workers.

A further $31.6 million will be provided by Branson's Virgin Ventures in order to maintain the scaled-back business while it searches for a buyer. According to bankruptcy records, Branson has already invested $70.9 million since November.

The business, which is a component of Richard Branson's empire and comprises Virgin Atlantic Airlines and Virgin Galactic Holdings, hasn't made money since becoming public. According to a regulatory filing from Virgin Orbit, it lost around $191.2 million last year.

Virgin Orbit employs an approach known as air launch, in contrast to some rivals who launch rockets from the ground, in which their LauncherOne rocket is released at a great height from underneath the wing of a modified Boeing Co. 747 aircraft.

Since the January mission, which was supposed to be the first orbital launch from British soil, went south, the business had to reconsider its plans to boost its launch frequency this year.

Nine mini-satellites were lost after its spacecraft failed to enter orbit due to an issue with a fuel filter during the journey.

According to CEO Hart, the inability of Virgin Orbit to obtain enough money was a result of higher interest rates and changes in the financial markets.

He also mentioned the company's own launch challenges, competition from better-funded rivals, and a slow-growing market for government-sponsored satellite launches.

(Bloomberg.com, Skynews.co.uk)