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In a dramatic turn of events, e-bike rental giant Bird Global has taken flight into Chapter 11 protection, unleashing a whirlwind of financial uncertainty. The Miami-based company, known for its short-term rental e-bikes and e-scooters in 350 global cities, filed for bankruptcy in a Florida court on Wednesday, citing a staggering $112 million debt burden.

Bird Global Hits Ch 11 With Sale Plans : Swooping into Chapter 11

Bird Global revealed it has orchestrated a strategic move, filing for Chapter 11 bankruptcy as a part of a grander plan to address its financial woes. The company, which went public in a splashy $2.3 billion merger in May 2021, is now navigating stormy financial waters with the aim of completing a sale within the next three to four months.

Bird Global Hits Ch 11 With Sale Plans : CEO's Flight Path to Profitability

Interim CEO Michael Washinushi, undeterred by the tempest, declared, "We are making progress toward profitability and aim to accelerate that progress by right-sizing our capital structure through this restructuring." Washinushi's resolute statement echoes Bird's commitment to weathering the storm and emerging stronger.

The Global Nest and its Debt Featherweight

Despite the financial turbulence, Bird clarified that its Canadian and European affiliates remain untouched by the bankruptcy tempest. The company currently grapples with a first-lien debt of $41.5 million and a staggering $71 million in second-lien debt. A further complication arises from a $6 million note tied to its acquisition of e-bike ride-sharing company Spin, sparking a dispute over Spin's working capital.

Bird Global Hits Ch 11 With Sale Plans :  A Chapter 11 Symphony of Struggles

Bird's Chief Restructuring Officer, Christopher Rankin, painted a vivid picture of the company's uphill battle, stating, "The debtors' losses coupled with difficult capital markets conditions have caused the company's cash balance to dwindle." He revealed an accumulated deficit of $1.6 billion by the end of September, emphasizing the pressing need for a financial overhaul.

Navigating the Storm with a Stalking Horse

In a bold move, Bird Global has deployed a stalking horse bid from its lenders, positioning itself for an auction of its assets. This strategic maneuver under the Restructuring Support Agreement (RSA) sets the stage for a riveting financial showdown.

Bird Global Hits Ch 11 With Sale Plans : Financial Lifeline from Above

To weather the financial storm, Bird has secured a lifeline of $25.1 million in new debtor-in-possession financing from Apollo Global Management and its second-lien lenders. This injection of capital aims to keep the wheels turning and the e-bikes rolling during the bankruptcy proceedings.

Expert Navigators on Board

Guiding Bird through this financial turbulence are Teneo Capital, serving as restructuring adviser, and Cassel Salpeter & Co., steering the ship as investment banker.

Legal Skies: First-Day Motions on the Horizon

A legal battleground awaits as Bird prepares for a hearing on the case's first-day motions scheduled for Friday. Represented by legal eagles Paul Steven Singerman, Jordi Guso, and Clay B. Roberts of Berger Singerman LLP, Bird is geared up for the legal skirmish that lies ahead.