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Bird Files For Bankruptcy 2 Months After NYSE delisting

 

By Nerly Shammah Dec 20, 2023

 

Electric scooter company Bird, filed for Chapter 11 bankruptcy almost 2 months after being delisted from NYSE. 

 

Bird  Electric Scooter Company

 

At Glance

 

● Bird files for Bankruptcy in a bid to restructure and strengthen its balance sheet. 

 

● Company confirms continued operations during the restructuring process. 

 

● Bird says that Bird Canada and Bird Europe are not part of the filing confirming that it will continue to operate as normal.

 

● Bird was delisted from New York Stock Exchange(NYSE) in late September. 

 

 

Due to the Bird's stock low market cap which according to MarketWatch is valued at $6.66M at the time of writing, the Bird stock was delisted from the New York Stock Exchange because of its inability to lift its market cap to $15 million.

 

Almost two months following the event, earlier today, in a press release, Bird announced its entry into a financial restructuring process aimed at strengthening its balance sheet and better positioning the company for long-term, sustainable growth.

 

"

 

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.

 

"

 

Bird confirms that operations at the company during this period will continue as usual citing its commitment to maintaining the same service for its riders and upholding its commitments to partner cities, fleet managers, and employees. 

 

It also confirms that Bird Canada and Bird Europe are not affected by this bankruptcy filing, noting continued operations in said locations. 

 

Bird was founded in 2017 by Travis VanderZanden and is headquartered in Miami, FL. Bird prides itself as the largest micromobility in North America building solutions for cleaner air and less traffic. Bird has lost over 99.65% of its valuation since going public in late 2021.

 

The electric scooter company went public via a SPAC merger but has since seen its stock fall from glory of $2 billion in market capitalization at the New York Stock Exchange(NYSE) debut to about $70 million 12 months later and currently delisted and trading OTC with a market cap of $6.66M. 

 

Coincidentally, rival company Mobility.com was delisted from Nasdaq on Monday as a result of the company’s noncompliance with the stock exchange’s listing rules, according to a regulatory filing - reports.

 

The Future Of Bird Following Bankruptcy Filing

 

Bird has undergone series of headwinds since launch with share price plummeting and CEO VanderZanden departing in June, that said, the aim of Bird's bankruptcy filing leans towards using the court-supervision process to facilitate a sale of its assets whilst entering into a "stalking horse" agreement with the company's existing lenders

 

The company confirms that this move is designed to effectively set a floor for Bird's value. The bid is subject to higher and better offers, and is aimed at maximizing value for all stakeholders. Bird expects to complete the sale process in the next 90-120 days as per the press release.

 

"

 

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.

 

"

 

The electric scooter company has noted that the functioning CEO Mr. Washinushi, will continue as the Interim CEO, supported by Board Chair John Bitove, President Stewart Lyons, and CFO Joseph Prodan during and after the restructuring process. 

 

Bird had acquired a rival scooter company for $19 million in September as a financial and strategic move to attain long-term sustainability and profitability. 

 

 

 
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