Company Will Be Liquidated Following Multiple Financial Setbacks

XCOR Aerospace has filed for Chapter 7 bankruptcy, according to federal court documents filed Wednesday. The 18-year-old company will be liquidated in an effort to satisfy its creditors.

Parabolic Arc reports that according to the court filing, XCOR has assets valued at between $1 million and $10 million, against liabilities estimated between $10 million and $50 million. The number of creditors is estimated at between 100 and 199.

The company, which was developing a two-seat suborbital spaceplane, laid off about half of its employees in 2016, saying it was refocusing its efforts on development of engine technology for United Launch Alliance's reusable ACES upper stage.

In the last two years, three of the company's four founder departed the company. CEO Jay Gibson left the company when he was nominated by President Donald Trump to be deputy chief management officer at the Department of Defense. Gibson was confirmed by the U.S. Senate last Tuesday.

XCOR laid off its remaining employees shortly after Gibson's departure. About half were hired back as contractors as interim CEO Michael Blum sought new investors. Those layoffs were the result of the company losing the ULA contract, Gibson later said.

(Image from file)

FMI: Original Report