Space News reports that small launch provider Vector and its subsidiary, Garvey Spacecraft Corporation, have filed for Chapter 11 bankruptcy in Delaware.
Vector had been delveloping the Vector-R booster to loft small satellites into low Earth orbit. However, it laid off most of its employees in August due to financial difficulties. CEO Jim Contrell left the company, with John Garvey taking over.
Space News reports:
According to industry sources familiar with the company, the August layoffs were triggered when one of the company’s major investors, venture fund Sequoia, withdrew its support for the company because of concerns about how the company was managed. That came as Vector was working on a new funding round, and Sequoia’s decision had a domino effect, causing other investors to back out. Sequoia didn’t respond to a request for comment in August about any role it played in Vector’s problems.
The company is currently being funded through “debtor in possession” financing from Lockheed Martin, according to a resolution by Vector’s board of directors included in the filing. Under a Nov. 20 agreement, Lockheed provided Vector with a $500,000 secured loan and proposed purchasing Vector’s assets associated with a satellite program called GalacticSky for no more than $2.5 million.
While Vector was best known for its small launch vehicle development efforts, it undertook a separate project called GalacticSky to create software-defined satellites. That resulted in a number of patents on the technology and work on prototype satellites the company once planned to start launching this year.
SAN JOSE, Calif. (Vector PR) —Vector, the space access company, today announced its GalacticSky division, which has been in stealth mode since 2016. Led by veterans from VMWare and Citrix, as well as satellite innovators, GalacticSky has achieved a major milestone on its path to launch its first GalacticSky software-defined satellite, GSky-1.
GSky-1 successfully completed integration at the University of Southern California’s Space Engineering Research Center (SERC) at the Information Sciences Institute (ISI) and will validate GalacticSky’s mission to enable innovators to easily and effectively deploy space application technology in space.
TUCSON, Ariz., May 1, 2017 (Vector Space Systems PR) — Vector, a micro satellite space launch company comprised of new-space and enterprise software industry veterans from SpaceX, Virgin Galactic, McDonnell Douglas, Sea Launch and VMware, today announced that it will join forces with Citrix to bring advanced datacenter and cloud virtualization technology into space for the first time through the development of a software defined satellite platform with Vector’s GalacticSky solution. Citrix and Vector will work together to enhance Citrix XenServer for space use and validate Vector’s GalacticOS, a purpose built satellite app operating system that enables entrepreneurs to easily develop space based applications.