Bird, an electric scooter rental company found in many US cities, has announced its decision to file for bankruptcy protection as part of a comprehensive restructuring plan.
The company clarified that the reorganization would specifically impact its operations in the US, as operations in Europe and Canada remained unaffected.
The restructuring initiative, as outlined in Bird's press release, involves the strategic sale of assets and is positioned as a crucial step toward enhancing the company's long-term sustainability and growth.
SAN FRANCISCO, CA - APRIL 17: A Bird scooter sits parked on a street corner on April 17, 2018 in San Francisco, California. Three weeks after three companies started placing electric scooters on the streets for rental, San Francisco City Attorney Dennis Herrera issued cease-and-desist notice to electric scooter rental companies Bird, LimeBike and Spin.
Bird Files For Bankruptcy
Despite the filing, Bird assured its users that regular operations would continue seamlessly, maintaining services for riders while upholding commitments to partner cities, fleet managers, and employees.
Bird Interim CEO Michael Washinushi emphasized the significance of this development as a critical milestone in the company's transformation journey, which began earlier in the year with the appointment of new leadership.
Washinushi expressed the company's commitment to progressing toward profitability and indicated that the restructuring would play a pivotal role in optimizing Bird's capital structure.
"We are making progress toward profitability and aim to accelerate that progress by right-sizing our capital structure through this restructuring. We remain focused on our mission to make cities more livable by using micromobility to reduce car usage, traffic, and carbon emissions," Washinushi said in a statement.
Throughout and after the restructuring process, Washinushi will continue to serve as the Interim CEO, with support from Board Chair John Bitove, President Stewart Lyons, and CFO Joseph Prodan.
Harvey L. Tepner joined the Board of Directors as an Independent Director last week, while Philip Evershed stepped down from the Board of Directors.
Read Also: Bird Faces NYSE Trading Suspension After Stock Collapse, Will Appeal Delisting Notice
Bird Enters Restructuring Support Agreement
Bird's first- and second-lien lenders have entered a comprehensive restructuring support agreement (RSA). As part of the restructuring, this agreement, accompanied by $25 million in new debtor-in-possession financing from MidCap Financial, a division of Apollo Global Management, marks the initiation of a voluntary Chapter 11 bankruptcy proceeding in the US Bankruptcy Court for the Southern District of Florida.
Bird Canada and Bird Europe (operating as "Bird Rides Europe B.V.") are excluded from the bankruptcy filing and will continue their regular operations. Bird has submitted customary "First Day Motions" to the court to navigate the bankruptcy process smoothly. These motions seek to ensure the continuity of operations, including the payment of wages and benefits to employees.
Bird anticipates swift approval from the court for these requests, aiming to minimize any adverse effects on city partners, riders, employees, and other key stakeholders.
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