[AR] Re: The end of Virgin Orbit
- From: Henry Spencer <hspencer@xxxxxxxxxxxxx>
- To: Arocket List <arocket@xxxxxxxxxxxxx>
- Date: Fri, 31 Mar 2023 13:39:15 -0400 (EDT)
On Fri, 31 Mar 2023, John Hare wrote:
There is some speculation that Branson will end up with the assets after
bankruptcy with investors getting the short end. Is it possible that
a team could be put together that could operate profitably??
Jordin Kare once called bankruptcy the "neutron mortgage" -- wipes out the
investors but leaves the buildings standing. :-)
Aside from the issue Bill mentioned -- a 747 is an expensive pet :-) --
there is the question of how many of the key *people* such a venture would
be able to retain/rehire. The assets typically aren't worth much without
the people who know how to use them. This is often the big problem with
trying to revive a company after a bankruptcy (or keep it going across a
pass through Chapter-11 bankruptcy protection).
If Branson wants to try this, he'd better be prepared and ready to move
fast. The odds of keeping the crucial people will decline rapidly.
Henry
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