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Virgin Orbit Holdings files Chapter 11 plan and disclosure statement
By Sarah Lizee
Olympia, Wash., April 20 – Virgin Orbit Holdings, Inc. filed a Chapter 11 plan of reorganization and related disclosure statement on Wednesday with the U.S. Bankruptcy Court in the District of Delaware.
Through the plan, the assets of the debtors will be marketed, permitting bids to acquire some or all of the assets of the debtors.
The debtors will distribute the proceeds received from a sale transaction resulting from the selection of the highest or otherwise best bid for the debtors’ assets or reorganized equity.
Under the plan, other priority claims will be paid in full in cash.
Holders of other secured claims will receive either payment in full in cash, the collateral securing their claims, or other treatment leaving the claims unimpaired.
The prepetition secured note claims will be allowed principal amount of $28.4 million plus accrued interest and other amounts due. On the effective date, noteholders will receive all distributable proceeds up to the allowed amount of the prepetition secured note claims.
Holders of general unsecured claims will receive their pro rata share of either a cash-out pool or distributable proceeds remaining after payment in full of prepetition secured note claims. The amount of the cash-out pool was not disclosed.
Intercompany claims and interests will be adjusted, reinstated or discharged.
Subordinated claims and equity interests will be canceled.
Holders of prepetition secured note claims and general unsecured claims are entitled to vote on the plan.
The company is proposing a voting deadline of 5 p.m. ET on June 26, and a confirmation hearing on July 3.
Long Beach, Calif.-based Virgin Orbit operates space launch systems. The company filed bankruptcy on April 4 under Chapter 11 case number 23-10405.
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