Bird enters financial restructuring process, transitions into bankruptcy
Bird Global, Inc., an environmentally friendly electric transportation company, has announced its entry 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.
“This announcement represents a significant milestone in Bird’s transformation, which began with the appointment of new leadership early this year,” says Michael Washinushi, interim CEO of Bird. “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.”
During and after the restructuring process, Washinushi will continue as interim CEO, supported by Board Chair John Bitove, President Stewart Lyons and CFO Joseph Prodan. Last week, Harvey L. Tepner joined the board of directors as an independent director, and Philip Evershed resigned from the board of directors.
The company’s first- and second-lien lenders have also entered into a comprehensive restructuring support agreement (the “RSA”). To implement the RSA and access $25 million in new debtor-in-possession financing from MidCap Financial, a division of Apollo Global Management, and the company’s existing second-lien lenders, 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. 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.
Bird Canada and Bird Europe (doing business as “Bird Rides Europe B.V.”) are not part of the filing and also continue to operate as normal. Since its inception, Bird riders have traveled over 300 million miles globally, offsetting an estimated 90 million pounds of carbon emissions from avoided car trips and playing a pivotal role in hundreds of cities’ sustainability goals while making alternative transportation convenient, efficient and fun.
Bird has filed with the Court a series of customary “First Day Motions” to facilitate a smooth transition into bankruptcy. These filings provide for 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 are expected to minimize the impact of the restructuring process on its city partners, riders, employees and other key stakeholders.
Additional information related to the proceedings is available on the Equip website. Stakeholders with questions may contact the company’s Claims Agent, Epiq, at bird@epiqglobal.com.
BergerSingerman LLP is serving as legal counsel, Cassel Salpeter & Co. is serving as investment banker, Teneo Capital LLC is serving as financial and restructuring advisor and Epiq Corporate Restructuring, LLC is serving as claims and noticing agent to the company.