MIAMI (BRAIN) — Micromobility company Bird Global Inc. filed for Chapter 11 bankruptcy protection and has started financially restructuring its operations while continuing to serve its riders, partner cities, fleet managers, and employees.
Bird operates a fleet of e-bikes and e-scooters that are available in 350 cities primarily across the U.S., Canada, Europe, the Middle East, and Australia. Bird Canada and Bird Europe are not part of the filing.
The company's first- and second-lien leaders also have entered into restructuring support agreement. The execution of the agreement and access to $25 million in financing from MidCap Financial is being conducted in U.S. Bankruptcy Court for the Southern District of Florida. Bird will use the court-supervised process to expedite the sale of assets with existing lenders setting the floor for bidding on the company's value. The bid is subject to higher and better offers and aimed at maximizing value for all stakeholders. Bird expects to complete the sale process in the next 90 to 120 days.
The list of secured creditors is topped by Amazon Web Services Inc., which is owed $4,804,312.57.
"This announcement represents a significant milestone in Bird's transformation, which began with the appointment of new leadership early this year," said Bird Interim CEO Michael Washinushi. "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."
During and after the restructuring process, Washinushi will continue as interim CEO, supported by Board Chair John Bitove, President Stewart Lyons, and CFO Joseph Prodan.
