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Electric Scooter Company Bird files for Bankruptcy | CNBC

Bird, the popular electric scooter rental company filed for Chapter 11 bankruptcy protection in Florida Federal Court last month. Bird’s electric scooters evolved and became popular for being environmentally friendly before the COVID-19 pandemic. Pre-pandemic, the company earned more than $275 million strengthening its valuation to $2.5 billion. However, Bird’s financial difficulties expedited when customers were forced into lockdown in 2020 and were unable to ride. In 2021, the company went public via a merger with a special purpose acquisition, but share prices plunged. Additionally, in September, the New York Stock Exchange delisted the company, which contributed to the bankruptcy proceedings. Moreover, due to Bird’s inability to keep its market capitalization above $15 million for 30 consecutive days, it failed to comply with the exchange’s requirements. The failure led to the company’s shares beginning to trade on the over-the-counter exchange. Eventually, the stock was trading at less than $1 per share. Despite the filing, Bird Canada and Bird Europe are not part of the company’s filing and will continue to operate.

The company has entered into a “stalking horse” agreement, which sets a floor for Bird’s value, with its existing lenders, according to a release. Bird said it will use the bankruptcy proceeding to facilitate a sale of its assets, which it expects to complete within the next 90 to 120 days.

Source: Electric Scooter Company Bird files for Bankruptcy 

Photo by niklasfotografics on Unsplash

Thomas H. Curran Associates represents a broad range of businesses and corporate entities, private equity funds, as well as governmental agencies and other interested parties in all phases of the bankruptcy process and in bankruptcy related transactions and litigation. As advocates and trusted business advisors, our well-established foundation of knowledge and understanding of our clients’ business and professional interests, enables our attorneys to deliver unparalleled individualized attention to our clients of all sizes with their bankruptcy, litigation and corporate transactional needs.

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