Micromobilty company, Bird Global, Inc. has initiated a financial restructuring process and has filed for Chapter 11 bankruptcy.
The company states that this is a strategic move designed to “strengthen its balance sheet” and position itself for sustained long-term growth.
Bird plans to ensure operational continuity and the same level of service throughout the restructuring process.
Bird's Interim CEO, Michael Washinushi said: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 restructuring support agreement (RSA) will be facilitated by a voluntary Chapter 11 bankruptcy proceeding in the US Bankruptcy Court for the Southern District of Florida.
Under the RSA, Apollo Global Management and second-lien lenders will provide 25 million USD in debtor-in-possession financing.
The court-supervised process will also include the sale of Bird’s assets, with agreements expected over the next 90-120 days.
Notably, Bird Canada and Bird Europe are unaffected by the announcement and continue regular operations.
