UK's Orbex Files for Administration Amid Funding Setbacks

United Kingdom - Ekhbary News Agency

UK's Orbex Files for Administration Amid Funding Setbacks

Orbex, a prominent UK-based company developing small satellite launch vehicles, has officially entered administration, a formal insolvency process in the United Kingdom comparable to bankruptcy. The announcement, made on February 11th, follows a series of failed attempts by the company to secure essential funding and finalize potential merger or acquisition deals, signaling the end of its operational journey.

Founded in 2015 and headquartered in Scotland, Orbex had positioned itself as a key player in Europe's burgeoning commercial space sector. A significant milestone was its selection in 2025 as one of five winners of the European Space Agency's (ESA) European Launcher Challenge (ELC). The company's flagship project was the development of 'Prime,' a dedicated small launch vehicle designed to deliver payloads of up to 200 kilograms into low Earth orbit. The initial flight of Prime, initially slated for late 2026, had already encountered several postponements, hinting at underlying developmental or financial challenges.

Records indicate that Orbex received approximately 34.9 million euros (around $41.5 million) from ESA under the ELC program. This funding was notably less than the substantial sums allocated to the other four ELC recipients, each receiving at least 169 million euros. At the time of the award, the UK government had not detailed its specific distribution plans for the 144 million euros it had budgeted for the ELC initiative. The financial difficulties escalated in December 2025 when Orbex confirmed the closure of its Danish subsidiary, Orbital Express Launch ApS, which subsequently filed for bankruptcy. Further attempts to find a lifeline included a letter of intent signed on January 21st with The Exploration Company, a Franco-German entity, to explore a potential acquisition. However, this potential lifeline also failed to materialize into a concrete agreement.

The company's February 11th statement confirmed the failure of its Series D funding round, a critical juncture for securing growth capital. Alongside equity funding, Orbex actively pursued various merger and acquisition avenues, but none progressed to a successful conclusion. Phil Chambers, CEO of Orbex, expressed profound disappointment in a press release: "Disappointing doesn't come close to describing how we feel about this moment. We have been successfully developing a sustainable, world-class sovereign space launch capability for the UK and were on the cusp of our first test flights later this year."

The collapse of Orbex casts a shadow over the United Kingdom's broader ambitions for establishing a robust domestic space launch capability. This setback comes at a sensitive time, coinciding with the announcement that Paul Bate, the chief executive of the UK Space Agency, will step down at the end of March as the agency undergoes a transition into a government department. Furthermore, the UK recently became the sole nation to reduce its financial commitment at the ESA's ministerial council meeting compared to previous rounds, raising concerns about national priorities in space.

A UK government spokesperson conveyed a commitment to the sector: "We remain committed to supporting our dynamic space sector. We recognize this will be a very worrying time for staff at Orbex. Space launch is a highly competitive sector, and it has always been the case that some companies will succeed, while others will fail." The spokesperson added, "We will be setting out more details about our plans for developing key national space capabilities, including launch, in due course. Any decisions will be focused on ensuring maximum impact for taxpayers’ money."

Scott Hammond, CEO of SaxaVord Spaceport, which was designated as Orbex's future launch site, commented on the situation. "While this is a sad day for Orbex, it will have very little impact on SaxaVord," Hammond stated. "While we had agreed Heads of Terms with the company, Orbex had never reached a position to start on site at SaxaVord and let us develop infrastructure for them to launch from. For us, fortunately, it is business as usual as we work with our other clients." This suggests that SaxaVord had diversified its client base, mitigating the impact of Orbex's failure.

The European Space Agency (ESA) acknowledged the event as indicative of the sector's realities. An ESA spokesperson noted, "Through initiatives like the ELC, we are supporting ambitious ventures and fostering a dynamic ecosystem. This approach is essential to driving progress, even as it comes with inherent challenges." The agency's support through programs like ELC aims to stimulate innovation, understanding that such ventures carry inherent risks.

Orbex will continue to trade while administrators assess the company's future. Potential outcomes include the sale of all or parts of the business and its assets. It remains a possibility that specific assets or business units could be acquired by different entities, potentially allowing some elements of Orbex's technology or operations to continue under new ownership.

Ekhbary News Agency