Satellite launch company Virgin Orbit Holdings Inc has begun drawing up detailed contingency plans for its insolvency days after halting its operations and furloughing its workforce, Sky News reported on Sunday.

Richard Branson's Virgin Group is working with restructuring firms Alvarez & Marsal and Ducera about fallback plans if they cannot secure new funding, the report added.

Last week, Reuters reported that Virgin Orbit Chief Executive Dan Hart told staff in a meeting that the furlough was intended to buy the company time to finalize a new investment plan to help pull it out of its financial woes, while the duration of the furlough remained unclear.

Virgin Orbit did not respond to a Reuters request for comment.

(Reporting by Urvi Dugar in Bengaluru; Editing by Aurora Ellis and Hugh Lawson)