Virgin Orbit Holdings, Inc. and its US subsidiaries, a responsive space launch provider, announced today that it filed a plan, which provides for, among other things, resolution of outstanding claims and interests and a related Disclosure Statement in the US Bankruptcy Court for the District of Delaware. The Plan and Disclosure Statement are subject to Court approval. As previously announced, the Company is pursuing a competitive sale process in order to maximize value for all stakeholders. The Company has proposed a May 4th deadline for indications of interest (IOI) and has asked the Court to approve bid procedures including the IOI deadline and a bid deadline of May 14, 2023. Any sale transaction will be implemented according to the Plan or according to a separate sale order under section 363 of the Bankruptcy Code. Pursuant to the proposed Plan, the sale proceeds will be distributed in accordance with the Plan and any applicable sale order.
Dan Hart, chief executive of Virgin Orbit, said, “We continue to make important progress and remain focused on positioning the Company to complete our sale process to the benefit of all stakeholders. We expect the filing of the Plan and Disclosure Statement will help us to efficiently conclude the Chapter 11 process once we have completed the sale of the Company. We remain committed to working with our investors and creditors throughout this process to achieve an optimal outcome for everyone.”
A Court hearing to consider approval of the Disclosure Statement related to the Plan is currently scheduled for May 24, 2023. Following Court approval of the Disclosure Statement, Virgin Orbit will distribute the Plan and Disclosure Statement to voting creditors for their consideration. This press release is not intended as a solicitation for a vote on the Plan. Any such solicitation will be made pursuant to and in accordance with the Disclosure Statement and applicable law, including orders of the Bankruptcy Court.
As previously announced, on April 4, 2023, the Company and its US subsidiaries filed a voluntary proceeding under Chapter 11 of the US Bankruptcy Code (Chapter 11) in the United States Bankruptcy Court in the District of Delaware in order to effectuate a sale of the business.