Virgin Galactic is on the verge of bankruptcy, and the company has suspended operations for a week

$Virgin Galactic(SPCE)$It is seeking funding while furloughing almost all staff and suspending operations for a week.

Executives briefed employees at a plenary meeting Wednesday at 5 p.m. EST, according to people attending the meeting. The furlough is unpaid, but employees can cash in with PTO, and only a small number of people continue to work. Virgin Orbit is also increasing pay by a week to Friday.

According to people familiar with the matter who asked not to be named to discuss internal affairs, the company's leading staff told employees that their goal is to provide updated information on vacation and funds by next Wednesday or Thursday.

A Virgin Orbit spokesperson confirmed in a statement to CNBC that the company was beginning a "suspension of operations." The spokesperson added that Virgin Orbital plans to "provide updates on future operations in the coming weeks".

The rocket-making company has developed a system that uses a modified 747 jet to send satellites into space by dropping rockets from under the wings of the aircraft during flight. However, the company's last mission failed in flight, and problems occurred during the launch, which caused the rocket to fail to enter orbit and fall into the ocean.

"Our investigation is nearing completion and our next production rocket with the necessary modifications is in the final stages of integration and testing," a Virgin Orbital spokesperson said.

When Virgin Orbit announced its third-quarter results in early November, it disclosed $71.2 million in cash on hand at the end of the quarter. Facing revenue of $30.9 million, Virgin Orbit reported an adjusted EBITDA loss of $42.9 million for the period as it continued to burn money.

Since the fourth quarter, the company has steadily raised funds in debt through the investment arm of Richard Branson's Virgin Group. The company raised $25 million through unsecured convertible notes in November, and then $20 million and $10 million through advanced secured convertible notes in December and February, respectively. These notes give Branson's parent company "priority" access to Virgin Orbital's assets.

As of Wednesday, the company has yet to announce when it will release its fourth quarter results for 2022.

Earlier this week, Virgin Orbital CEO Danhardt canceled last-minute plans to attend a panel meeting on the sidelines of an aerospace industry conference scheduled for Tuesday in Washington, D.C.