CATMA’s statement on Bird’s Restructure
Coming on the heels of a bikeshare season with 30,000 rides and over 5,000 riders in the Greater Burlington Area, CATMA re-iterates its commitment to bikeshare as an essential transportation option in Chittenden County. Despite Bird, as a company, facing headwinds, we are proud to be a success story for Bird in 2023. We remain committed to our partnership with Bird and fully expect bikeshare to pick back up once winter weather subsides.
A Message from Bird Regarding Their Restructure
“As a valued partner, I’m writing to inform you that a short while ago Bird announced that we have made the proactive decision to restructure our finances to best position the company for success. I am including more context on this news below, but first I want to underscore that we expect this strategic restructuring to move quickly and have no impact on Burlington area or our riders. Our commitment to CATMA, local employees, and riders remains unwavering, and we expect that this restructuring will allow us to continue investing in hardware and technology and to continue building on our success in the Cities. Specifically, here is what this news means for you:
- Uninterrupted Service: Throughout restructuring, Bird will continue our operations as usual, and our operations in Burlington area will continue with the same levels of service and safety, without interruption.
- Upholding Our Commitments: Bird expects to uphold all of the commitments we have made to CATMA including compliance with rules and regulations, full payment of past and future fees, outstanding and future legal defense and indemnity costs, and other obligations. We have the financial resources to fully support our local operations teams, pay permit-related fees, and run a responsible business.
- Preserving Local Jobs: Our employees and Fleet Managers are a vital part of our success, and Bird is dedicated to preserving jobs on our local teams and we expect zero impact in this regard. Next Spring, we will operate with the same local team and level of performance you have come to expect.
This announcement represents a significant milestone in Bird’s financial transformation, which began with the appointment of new leadership earlier this year. Our company is making progress toward profitability and aims to accelerate that progress by right-sizing our capital structure through this restructuring. Effective Wednesday, December 20, Bird has filed for voluntary protection for its U.S. business under Chapter 11 of the U.S. Bankruptcy Code. As part of the restructuring, Bird has raised $25M in funding from our primary lenders, which we will use to fund normal operations—including upholding all city commitments-–during this process. We expect Bird to emerge from this restructuring process in 90-120 days with a strengthened financial position that will allow us to invest more significantly in our operations, employees, and the communities we serve for years to come.
For more details on our restructuring and future plans, here is an FAQ sheet for your reference. I am available to answer any questions on your mind, as are Bird’s senior leaders.
Above all, the entire Bird team and I are as dedicated as ever to putting our partners first, creating local jobs, and delivering the same quality of service without interruption. We appreciate your continued partnership and support.”
Bird – Sr. Government Partnerships Manager
email – email@example.com
cell – 774-222-1998