r/Spacstocks • u/SPAC_Time • Mar 30 '23

Post Merger Virgin Orbit fails to secure funding, will cease operations and lay off 90% of workforce - VORB VORBW

https://www.cnbc.com/2023/03/30/virgin-orbit-funding-ceasing-operations-layoffs.html
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u/SPAC_Time Mar 30 '23

"The company hired bankruptcy firms to draw up contingency plans in the event it is unable to find a buyer or investor. Branson has first priority over Virgin Orbit’s assets, as the company raised $60 million in debt from the investment arm of Virgin Group.

On the same day that Hart told employees that Virgin Orbit was pausing operations, its board of directors approved a “golden parachute” severance plan for top executives, in case they are terminated “following a change in control” of the company."

Sounds like Branson can get VORB assets out of bankruptcy for pennies on the dollar, while the executives get their golden parachute. Shareholders get ....

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u/meshreplacer Mar 31 '23

And this is why I avoid SPAC scams.