The US Bankruptcy Court approved the fifth amended joint plan of reorganization of Virgin Orbit Holdings, Inc. on July 31, 2023. The debtor has filed its fifth amended plan in the Court on July 31, 2023. As per the amended plan, general administrative claims, professional fee claims, DIP facility claims of $74.10 million, priority tax claims, other priority claims of $0.10 million, other secured claims of $2 million, United States Trustee statutory fees, shall be paid in full in cash.

Prepetition secured notes claims of $28.40 million shall be recovered 0% and shall receive distributable proceeds remaining after payment in full in cash of the DIP claims, the VIL Litigation Trust Interests, and the rights to all IP assets. General unsecured claims between $85 million to $115 million shall be recovered between 0.96% to 1.29% and shall receive its pro rata share of GUC recovery. Convenience claims $0.51 million shall be recovered 50% i.e., $0.26 million and shall be settled in cash.

Intercompany claims and intercompany interests shall receive no distribution under the plan and shall be reinstated. Subordinated claims of $0 shall be cancelled. Equity Interests shall receive no distribution under the plan and shall be cancelled.

The plan shall be funded through cash and sale of assets.