By Scott Kanowsky 

-- Richard Branson’s troubled space-launch firm Virgin Orbit Holdings Inc (NASDAQ:) has collapsed, filing for Chapter 11 bankruptcy in a court in the U.S. state of Delaware on Tuesday morning.

"While we have taken great efforts to address our financial position and secure additional financing, we ultimately must do what is best for the business," Chief Executive Dan Hart said in a statement.

Shares in Virgin Orbit sank by more than 20% in premarket U.S. trading.

The California-based company listed assets of about $243 million and its total debt at $153.5M as of September 30 in the filing with the Delaware court, Reuters reported. Virgin Orbit added that it will look to achieve a "swift conclusion" to its ongoing hunt for a potential buyer. 

Spun off of Branson’s space tourism venture Virgin Galactic (NYSE:) in 2017 to develop rockets to carry small satellites into space, Virgin Orbit has been struggling to secure funding after it reportedly told its employees last month that it had halted its operations indefinitely. 

At the time, Virgin Orbit said in a separate filing with the U.S. Securities and Exchange Commission that it would lay off 85% of its about 750 staff. Total costs related to the dismissals were estimated to be approximately $15M. Branson's investment arm plugged $10.9M into the group via a senior secured convertible note, which Virgin Orbit said would be enough to pay out severance to the roughly 675 workers who will lose their jobs.

On Tuesday, Virgin Orbit said the investment vehicle will inject a further $31.6M in new money through so-called debtor-in-possession financing, which allows a business to raise capital while it is in bankruptcy proceedings in court.