Lei Jianping on December 21
Electric scooter rental pioneer Bird Global, Inc. (OTCQX:BRDS) today announced that it has entered a financial restructuring process aimed at strengthening its balance sheet and better positioning the company for long-term, sustainable growth.
As part of this process, Bird will continue to operate as usual, providing the same services to its passengers and upholding its commitment to partner cities, fleet managers and employees.
Michael Washinushi, Bird's interim chief executive officer, said: "We are making progress towards profitability and aim to accelerate this progress by aligning our capital structure through this restructuring. ”
Washinushi will continue to serve as interim CEO during and after the restructuring process, supported by Chairman of the Board John Bitove, President Stewart Lyons and Chief Financial Officer Joseph Prodan.
The Bird First Lien and Second Lien Lenders also entered into a comprehensive Restructuring Support Agreement ("RSA"). To implement RSA and obtain $25 million in new debtor possession financing from MidCap Financial (a division of Apollo Global Management) and the company's existing second lien lenders, Bird has commenced voluntary Chapter 11 bankruptcy proceedings under the U.S. Bankruptcy Code.
Bird Canada and Bird Europe (dba for "Bird Rides Europe B.V." ) is not included in the scope of filing, and continues to operate normally.
Bird has filed a series of customary "first day motions" with the court to facilitate a smooth transition to bankruptcy. These documents provide for the payment of wages and benefits to employees and other provisions to enable Bird to continue operations as usual.
Back in November 2022, Bird had warned that it could face bankruptcy within the next 12 months unless it could raise more cash.
Former backdoor listing: $2.3 billion
Bird was once in the limelight, being the fastest startup to reach a $1 billion "unicorn" valuation in 2018.
Bird, a U.S.-based shared skateboard electric vehicle operator, rents out the scooter by using an app that corresponds to the launch of the electric scooter. Consumers can park their vehicle on the side of the street and end their trip when they are done using it.
Bird is committed to building environmentally friendly transportation modes, advocating low-carbon mobility, and encouraging the public to choose clean and environmentally friendly travel alternatives.
In October 2019, Bird announced a $275 million investment in a Series D funding round, raising its valuation to $2.5 billion from $2 billion in January of that year, with investors including CDPQ and Sequoia Capital.
Bird merged with blank check company Switchback II in November 2021 at an initial valuation of $2.3 billion and listed on the New York Stock Exchange.
Delisting from the New York Stock Exchange
After the scenery, it is lonely. Back in late 2022, Bird warned investors that it was now fighting for survival after inflating its historical revenue by tens of millions of dollars.
Bird's management said there were "big questions about the company's ability to continue as a going concern" even after closing operations in dozens of cities, reorganizing its management team and renegotiating its debt payments to cut costs.
However, Bird has not been able to solve the profitability problem.
According to the financial report, Bird's revenue for the second quarter of 2023 was $48.3 million, compared to $66.8 million in the same period last year, a net loss of $9.3 million, compared to a net loss of $320 million in the same period last year, and adjusted EBITDA of -$1.2 million, compared to -$28.9 million in the same period last year.
Bird's management has also been in turmoil, with President Stewart Lyons and Chief Financial Officer Joseph Prodan both being appointed in recent months.
As of June 30, 2023, Bird had only $6.8 million in unrestricted cash and cash equivalents. In September 2023, Bird was forcibly delisted by the New York Stock Exchange for failing to meet the minimum conditions for listing.
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