Electric scooter firm Bird Global files for bankruptcy
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The news: Bird Global has filed for chapter 11 bankruptcy protection in Florida, a rapid downfall for a start-up which was the fastest to reach ‘unicorn’ status in history.
The numbers: Bird was valued at USD2.5 billion ($3.7 billion) in 2019, but has suffered share price losses of over 90% since it listed in 2021.
The context: The e-scooter distributor was a darling of the tech world, going public in 2021 via a SPAC (special-purpose acquisition company) that was a trademark of the year. In January this year the company raised USD30 million in convertible notes and cash injections from Bird executives in a merge with Bird Canada. The FT reports that Bird has just USD3.25 million cash available on hand and needs “immediate access” to USD16.8 million to meet its financial obligations through to the week ending January 12.
Bird has reached a restructuring agreement with creditors, where existing lenders will purchase the assets for a base price unless a higher offer is received. Apollo Global Management will provide USD25 million for the restructuring process through a debtor-in-possession financing, a lending agreement that will take priority over other creditors.
What they 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,” said Bird Interim CEO Michael Washinushi in a statement.
The source: Bird Global Press Release
