Bird Global has filed for Chapter 11 bankruptcy protection, just over two years after the electric scooter rental company went public.
The financial restructuring is the company's latest attempt to right the ship after losing nearly all its market value since it began trading on the New York Stock Exchange through a special purpose acquisition company (SPAC) deal in Nov. 2021 that valued the startup at $2.3 billion.
"This announcement represents a significant milestone in Bird's transformation, which began with the appointment of new leadership early this year," Bird Interim CEO Michael Washinushi said in a statement announcing the move.
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"We are making progress toward profitability and aim to accelerate that progress by right-sizing our capital structure through this restructuring," Washinushi said. "We remain focused on our mission to make cities more livable by using micromobility to reduce car usage, traffic, and carbon emissions."
Bird said in a press release that its first- and second-lien lenders have signed off on a restructuring support agreement, which Apollo Global Management's MidCapt Financial division will provide $25 million to implement. The company said it has entered into a so-called "stalking horse" agreement with the existing lenders, which will effectively set a floor for the e-scooter firm's value.
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The company said it expects the court-supervised process of selling assets will be complete within the next 90 to 120 days.
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Bird's Canadian and European operations are not included in the bankruptcy, and will continue to operate as normal, the company said.
Reuters contributed to this report.
