Bird, which provides a shared scooter service in the United States, has filed for Chapter 11 Bankruptcy. Bird was founded by Travis VanderZanden, a former Uber executive. The company is going through bad times right now.
Scooter company Bird files for Chapter 11 bankruptcy
Florida-based Bird listed assets and liabilities of between $100 million and $500 million in a court filing. The filing protects the company from creditors. It also wants court approval for a plan to repay the debts.
Founded in 2017 birdWe can say that it became the ancestor of many shared scooter companies. In fact, the company quickly reached a valuation of $1 billion, becoming one of the fastest startups. Of course, things didn’t always go well. Bird’s shares have fallen significantly this year. In September, the NYSE began delisting transactions. For 30 consecutive days of trading, the company’s average market cap has fallen below $15 million. At the time of writing, Bird shares were sold at $0.42.
We said Bird filed for Chapter 11 Bankruptcy. So what does it mean to file for Chapter 11 Bankruptcy?
What does it mean to file for Chapter 11 Bankruptcy?
Filing for Chapter 11 BankruptcyIn the United States, it is known as a reorganization bankruptcy. A debtor resorts to this form of bankruptcy when he wants his business relationships, debts and assets to be reorganized.
This type of bankruptcy takes its name from the US bankruptcy code 11.
If a company files for Chapter 11 Bankruptcy, the court assists with the debts and obligations of the business and supports its restructuring. During this process, the company remains open and operational.
If we look at the past, we see that many companies actually filed for Chapter 11 and moved on. For example, General Motors. Likewise, United Airlines returned from bankruptcy in a similar manner.
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