Latham & Watkins acted for Virgin Orbit in Chapter 11 Restructuring
Virgin Orbit Holdings, Inc. and its US subsidiaries, a space launch provider known for its responsiveness, have announced
Latham & Watkins acted for Virgin Orbit in Chapter 11 Restructuring
Virgin Orbit Holdings, Inc. and its US subsidiaries, a space launch provider known for its responsiveness, have announced that they have started a voluntary proceeding under Chapter 11 of the US Bankruptcy Code in the United States Bankruptcy Court in the District of Delaware.
The purpose of the proceeding is to facilitate a sale of the business. Virgin Orbit will use debtor-in-possession financing from Virgin Investments Limited to maximise the value of its business and assets during the Chapter 11 process.
To assist in financing the process and safeguard its operations, the company has secured a pledge from Virgin Investments Limited for £31.6 million in new money debtor-in-possession (DIP) financing.
Subject to approval from the Bankruptcy Court, it is anticipated that the DIP financing will provide Virgin Orbit with the essential liquidity to continue operations while pursuing the pre-petition marketing process to sell the company and look for a value-enhancing transaction for the business and its assets.
Latham & Watkins LLP is serving as restructuring counsel to Virgin Orbit, with a Restructuring & Special Situations team led by Los Angeles partner Jeff Bjork and New York partners George Klidonas and Anupama Yerramalli. The team includes associates Liza Burton, Mohini Rarrick, Brian Rosen, and Thomas Fafara.
Litigation matters were advised by Los Angeles partner Amy Quartarolo and associate Tiffany Ikeda. New York partner Ellen Smiley and associate Eliza Murray provided advice on public company representation matters, while New York partner Justin Hamill and Chicago partner Jason Morelli, with associates Nima Movahedi and Shannon Cheng, advised on M&A matters.
Orange County partner Drew Capurro and associate Greg Van Buiten provided advice on capital markets matters, and New York partners Alfred Xue and Conray Tseng and New York counsel Preeta Paragash advised on finance matters. San Diego partner Drew Gardiner advised on insurance matters, while Chicago partner Joe Kronsnoble and associate Derek Gumm provided advice on tax matters. Employment matters were advised by Los Angeles partner Joe Farrell and associate Laura Zabele.