Bankrupt rocket company Virgin Orbit received a $17 million “stalking horse” bid for its modified 747 carrier jet and other aircraft assets, as it continues to examine options during chapter 11 court proceedings, CNBC.com reported. Virgin Orbit agreed to the terms of the potential aircraft deal from aerospace venture Stratolaunch, which is developing the world’s largest airplane called “Roc” as an airborne platform for hypersonic flight testing. A stalking horse bid represents the first foray on assets of a bankrupt company, and effectively sets the minimum bid for any potential competing offers. According to bankruptcy filings released Tuesday, the stalking horse agreement followed “hard-fought negotiations” between the companies. The deal would see Stratolaunch buy Virgin Orbit’s aircraft assets for cash, with a $1.7 million deposit to be made by the buyer immediately in escrow if the deal goes through. Virgin Orbit filed for bankruptcy protection on April 4 after the company failed to secure a funding lifeline and laid off nearly its entire workforce.
