Electric vehicle company Bird Global entered into a financial restructuring process aimed at strengthening its balance sheet and better positioning the company for 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,” Michael Washinushi, interim CEO of Bird, said. “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 John Bitove (board chair), Stewart Lyons (president) and Joseph Prodan (CFO). Last week, Harvey L. Tepner joined the company’s board of directors as an independent director, and Philip Evershed resigned from the board of directors.
Bird’s first and second lien lenders also entered into a restructuring support agreement with the company. 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 a 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 to 120 days.
Bird Canada and Bird Europe (dba 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 more than 300 million miles globally, offsetting an estimated 90 million pounds of carbon emissions from avoided car trips.
Bird has filed with the court a series of customary first day motions to facilitate a smooth transition into bankruptcy. These filings will 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.
BergerSingerman is serving as legal counsel, Cassel Salpeter & Co. is serving as investment banker, Teneo Capital is serving as financial and restructuring advisor, and Epiq Corporate Restructuring is serving as claims and noticing agent to Bird.
