Right.. I think the intention of Virgin Orbit is hidden in this paragraph:
"Upon completion of the stock issuance, the signing of the new agreements and the grant of options to
Virgin Orbit, the previous A$55 million Launch Services Agreement (LSA) with Virgin Orbit will be
terminated, with
both parties to be released from all past, current and future obligations related to the
LSA"
Someone quite clever in the accounting department at Virgin orbit (I presume) has found that they can save a lot of money by breaking bonds with SAS, hence the termination of the LSA and quite a strong statement at that. My best bet is they have approached governing agencies of the ASX and proposed their intentions, giving them leverage over SAS to essentially bail them out. SAS cant exactly refuse an opportunity like this either. For a cheeky 3 mil over 3 years, they may have well just saved their company a lot of money in the long run by severing ties with SAS.
TLDR; Virgin is only doing this to sever their LSA with SAS, which is IMO a way to save Virgin alot of money in the long run then it sitting with this dead company.
IMO, I think any opportunity to realise a loss should be taken. Just my take as to what I see hidden behind the lines here.
Happy to be proven wrong and SAS has something that Virgin Orbit sees profitable, and it runs again. Time will tell
