Virgin Orbit Holdings Inc (NASDAQ:VORB) shares are heading for a new low as it fights a decision by Nasdaq to delist the company's shares after it launched an “expedited” sale process after filing for Chapter 11 bankruptcy.
The rocket launch outfit said a bidding process aims to conclude with a bid deadline of May 15 and with any auction concluded by May 18.
Last week, the company went into Chapter 11 as it was not able to find a buyer, saying it would continue operating while it tries to sell the business, helped by further financing from founder Sir Richard Branson.
In its filings with the federal bankruptcy court, the company said an 'expedited sale' process has been chosen as part of the Chapter 11 process, as it provides the company, which is mostly owned by Branson's Virgin Group, with "certain advantages" that were not available before entering bankruptcy, and it believes that there are several parties that "will have interest in pursuing an acquisition" or the company or their assets either in whole or part.
Its investment bankers, Ducera Partners, will also market the assets "more broadly" than was done before entering Chapter 11.
There was just $700,000 “unrestricted” cash available at the moment of collapse, before Branson's latest funding injection.
Last night the company publicly shared the news that Nasdaq was launching delisting proceedings as a result of the Chapter 11 process, insisting that the company is "not compliant" with listing rules as it has not yet filed its annual results for 2022.
Nasdaq informed the company last week that trading in its stock and warrants would be suspended from Thursday, with any appeal of the decision still likely to see the stock suspended unless the appeal is successful.
The shares fell 17% to US$0.17 at the start of the week and are heading for another 18% plunge to US$0.14 on Tuesday, according to pre-market trading.
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