E-scooter company Bird Global, Inc. announced on December 20, 2023, that they are entering into a financial restructuring process aimed at strengthening its balance sheet and better positioning the company for long-term, sustainable growth. Bird will operate as usual during this process, maintaining the same service for its riders and upholding its commitments to partner cities, fleet managers, and employees. “We expect to continue operations in Great Falls as normal and we look forward to working with the city administration as a partner into the future,” explained Austin Marshburn of Bird Global.
“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 in a press release. “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.”
Bird has commenced a voluntary Chapter 11 bankruptcy proceeding in the U.S. Bankruptcy Court for the Southern District of Florida. The Company will use the court-supervised process to facilitate the sale of its assets and has entered into a “stalking horse” agreement with the Company’s existing lenders, which effectively sets a floor for Bird’s value. Bird Canada and Bird Europe are not part of the filing and continue to operate as normal.
Bird has filed with the Court a series of customary “First Day Motions” to facilitate a smooth transition into bankruptcy. These filings provide for the payment of wages and benefits to employees and make other provisions to enable Bird to continue operating as usual. Bird expects the Court to approve these requests in short order, which is expected to minimize the impact of the restructuring process on its city partners, riders, employees, and other key stakeholders.
Author: Karen Anderson
Karen is the Editor-in-Chief overseeing all news operations at Foxys Publishing Co. She also loves photography and spending time with her dogs.
