Virgin Orbit Files for Bankruptcy

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Cost Accounting, Ethical Dilemma, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Income Taxes, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to the New York Times, the satellite launch company, founded by Richard Branson, announced sweeping cuts last week as it struggled to recover from a high-profile rocket failure in January.

Questions:

  1. What was the unusual way that the company was going to get satellites into space?
  2. In the most recent attempt by the company to launch the satellites, how many were lost?
  3. When the company was “unable to secure meaningful funding,” how many employees were laid off and what percentage was that of the total number of employees employed?
  4. In U.S. Bankruptcy Court, what amount of assets did the company list and what amount of debt did the company list?
  5. How does this compare to the net worth of the company when it went public in 2021?

Source:

Granville, K. (2023) Virgin Orbit Files for Bankruptcy After Failed Launch and Lack of Funding. The New York Times, April 4 (Retrievable online at https://www.nytimes.com/2023/04/04/business/virgin-orbit-bankruptcy.html)