Asset Liquidation of Virgin Orbit’s Payload Processing Facility

Virgin Orbit, a prominent aerospace company, faced financial turmoil after a mission failure in January, leading to the cessation of operations and the eventual filing for Chapter 11 bankruptcy in April 2023. In response to the bankruptcy, Virgin Orbit sought an asset disposition solution that involved an outright purchase of the assets, including the machinery and equipment used in the manufacturing of rocket delivery systems and components from their facility in Long Beach, California. Integra Asset Solutions along with its partners successfully acquired a portion of the assets through a competitive bidding process. This case study delves into the liquidation process and the successful 2-day auction event conducted by Integra.

Assessment

The inventory included an extensive range of equipment, such as an ISO 8 cleanroom, CNC machine tools, tube and metal fabricating machines, welding equipment, test and inspection tools, assembly stations, material handling machinery, and various other facility support equipment. Each item was appraised based on its condition, age, and market demand. This detailed assessment allowed Integra to offer a competitive bid, ultimately securing the purchase of this package of assets.

Marketing Strategy

To ensure a successful liquidation process, Integra devised a comprehensive marketing campaign targeting aerospace manufacturing end-users as well as other manufacturing industries interested in general-purpose metalworking and welding equipment. The campaign leveraged various channels, including digital advertising, industry-specific publications, and direct outreach to potential buyers.

Auction Event

Integra organized a 2-day auction event on June 27 and 28, 2023, to showcase over 900 items from this location and facilitate their sale. The auction was conducted through a hybrid model, with a live virtual auction conducted by the auctioneer as well as a timed online only event. This approach enabled a broader reach and attracted a significant audience, with a total of 760 registered participants over the two auction days.

Challenges

Understanding the urgency and extremely compressed timeframe dictated by the bankruptcy proceedings, Integra implemented an expedited liquidation process. This involved efficient coordination and communication with another aerospace company that acquired a portion of the assets from this facility to ensure a timely and seamless transfer of assets to the successful bidders. Several items at this location needed to be secured to be ITAR (International Traffic in Arms Regulation) compliant.

Solution

Integra Asset Solutions’ expertise in asset disposition proved instrumental in successfully liquidating Virgin Orbit’s assets following their bankruptcy. Through a well-executed marketing campaign and an expedited setup, auction, and removal process, Integra efficiently handled the sale and transfer of these assets to participating buyers. This case study demonstrates the importance of professional asset management and disposition solutions during challenging financial situations for businesses.