Virgin Orbit shuts down after bankruptcy sale to Rocket Lab, Stratolaunch and Vast's Launcher

Bankrupt rocket institution Virgin Orbit is shutting down, aft selling its installation leases and instrumentality to a trio of aerospace companies successful an auction, the institution confirmed connected Tuesday.

"As Virgin Orbit embarks connected this path, the absorption and employees would similar to widen their heartfelt gratitude to each stakeholders," the institution said successful a statement.

"Virgin Orbit's bequest successful the abstraction manufacture volition everlastingly beryllium remembered. Its groundbreaking technologies, relentless pursuit of excellence, and unwavering committedness to advancing the frontiers of aerial motorboat person near an indelible people connected the industry," the institution added.

Spun retired of Virgin Galactic successful 2017 by laminitis Sir Richard Branson, Virgin Orbit reached rarefied aerial by flying aggregate missions. But trouble raising funds, and dilatory execution, brought the erstwhile multi-billion dollar institution to bankruptcy and yet unopen down.

Monday's auction bids magnitude to astir $36 cardinal successful total. Virgin Orbit's six oregon truthful rockets that were successful assorted stages of manufacturing assembly, and its intelligence property, person yet to beryllium sold, a Virgin Orbit spokesperson confirmed.

Rocket Lab successfully bid $16.1 cardinal for the company's office successful Long Beach, California, which is astir 140,000 quadrate feet, the spokesperson said. Although founded successful New Zealand, Rocket Lab was already a neighbour of Virgin Orbit, with a office and facilities successful the Long Beach area. Additionally, Rocket Lab's acquisition includes assets specified arsenic 3D-printers and a specialty vessel welding machine.

Stratolaunch was awarded its $17 cardinal "stalking horse" bid for Virgin Orbit's 747 jet. A Stratolaunch spokesperson, successful a connection to CNBC, said the institution "continually evaluates ways to summation our capableness to conscionable the imperative for investigating hypersonic technologies via leap-ahead formation demonstrations."

"We volition stock much quality astir the merchantability arsenic it becomes available," Stratolaunch noted.

Launcher, a subsidiary of Vast Space, is purchasing the company's installation successful Mojave, California — arsenic good arsenic immoderate machinery, instrumentality and inventory — for $2.7 million. Virgin Orbit's Mojave leases see infrastructure specified arsenic rocket-engine trial stands and an craft hangar.

A liquidation company, Inliper, is purchasing the company's bureau instrumentality for $650,000.

Rocket Lab and Launcher did not instantly respond to CNBC requests for comment.

Previously successful the bankruptcy process, Virgin Orbit agreed to the presumption of Stratolaunch's bid, which was to acquisition the 747 pitchy "Cosmic Girl" and different craft assets. Stratolaunch has been processing its ain airborne system, the world's largest airplane called "Roc," arsenic a level for hypersonic formation testing.

Virgin Orbit filed for bankruptcy extortion connected April 4 after the institution failed to unafraid a backing lifeline and laid disconnected astir its full workforce. The auction result falls abbreviated of Virgin Orbit's extremity successful the Chapter 11 bankruptcy process, which was to find a wholesale purchaser that would support the company's assets and intelligence spot intact.

The bankruptcy tribunal is acceptable to o.k. the income successful a proceeding connected Wednesday astatine 2 p.m. ET.