Virgin Orbit Holdings and its U.S. subsidiaries filed a plan, which provides for, among other things, resolution of outstanding claims and interests and a related disclosure statement in the U.S. Bankruptcy Court for the District of Delaware. The plan and disclosure statement are subject to court approval.
The company, which commenced a voluntary proceeding under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court in the District of Delaware earlier this month, is pursuing a competitive sale process in order to maximize value for all stakeholders. The company has proposed a deadline of May 4 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. Any sale transaction will be implemented according to the plan or according to a separate sale order under section 363 of the U.S. Bankruptcy Code. Pursuant to the proposed plan, the sale proceeds will be distributed in accordance with the plan and any applicable sale order.
“We continue to make important progress and remain focused on positioning the company to complete our sale process to the benefit of all stakeholders,” Dan Hart, chief executive of Virgin Orbit, said. “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.
Virgin Orbit is represented by Latham & Watkins as restructuring counsel, Young Conaway Stargatt & Taylor as local restructuring counsel, Alvarez & Marsal as restructuring advisor and Ducera as investment banker. Virgin Group is represented by Davis Polk & Wardwell as restructuring counsel, Morris, Nichols, Arsht & Tunnell as local restructuring counsel and FTI Consulting as financial advisor.
