Bird files for bankruptcy
Bird Global, Inc., known for eco-friendly electric transport, has filed for Chapter 11 bankruptcy. Bird is going through a financial restructuring to improve its finances for future growth. They’ll keep running as normal, providing the same service to riders and sticking to their promises to cities, fleet managers, and employees.
While the restructuring goes on, Mr. Washinushi stays on as Interim CEO, backed by Board Chair John Bitove, President Stewart Lyons, and CFO Joseph Prodan. Recently, Harvey L. Tepner became an Independent Director on the Board, while Philip Evershed stepped down.
Bird Interim CEO Michael Washinushi said in a statement:
“This announcement represents a significant milestone in Bird’s transformation, which began with the appointment of new leadership early this year. 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.”
The company’s main lenders agreed to a plan for restructuring, which involves getting $25 million from MidCap Financial and the company’s existing lenders. To do this, Bird has filed a voluntary Chapter 11 bankruptcy process in Florida. They’ll use this process to sell their assets and have a starting bid set by their current lenders. Other offers can still come in to get the best value for everyone involved. They aim to finish this sale in the next 90-120 days.
Bird Canada and Bird Europe (also known as “Bird Rides Europe B.V.”) are not part of this bankruptcy and will keep running as usual. Bird has also asked the Court for some initial requests to keep things running smoothly during the bankruptcy, like paying employees and keeping operations going. They hope the Court will approve these quickly to minimize how this process affects their city partners, riders, employees, and other important people involved.
