Bird Global (OTCMKTS:BRDS) stock has lost its wings with shares down by more than 80% today. This follows news that the micromobility firm has filed for Chapter 11 bankruptcy protection in the United States. The company’s operations in Canada and Europe are not included in the bankruptcy filing.
Bird’s U.S. operations will operate as usual, meaning that its electric scooters will stay active for the time being.
Bird has announced that it will enter into a financial restructuring process in order to support its long-term health. Its first- and second-lien lenders have agreed to a restructuring support agreement, which will see Apollo Global Management division MidCap Financial and other second-lien lenders providing the company with $25 million in debtor-in-possession (DIP) financing.
In addition, Bird will begin the process of selling off its assets under a court-supervised process. Furthermore, the company has initiated a “stalking horse” agreement with its lenders that will set a price floor for its valuation. Bird will wait for higher offers in the meantime, while the sale process is expected to be completed within 90 to 120 days.
“We are making progress toward profitability and aim to accelerate that progress by right-sizing our capital structure through this restructuring,” said interim CEO Michael Washinushi. “We remain focused on our mission to make cities more livable by using micromobility to reduce car usage, traffic, and carbon emissions.”
5 Investors Betting Big on BRDS Stock
Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. However, Bird’s institutional ownership as of the third quarter was only 11.08%. Perhaps these investors took note of Bird’s declining financials and decided to deploy their capital elsewhere.
According to WhaleWisdom, only eight 13F filers reported a stake in BRDS stock during Q3, down from 45 filers during Q2. It appears that this figure only includes filers who submitted a Q3 13F update, as BRDS stock has additional institutional shareholders who did not submit a Q3 update.
With that in mind, let’s take a look at Bird’s top shareholders:
- Obelysk Transport: 1.62 million shares. Obelysk’s stake is accurate as of January 2023.
- Tier Mobility: 1.60 million shares. Tier’s stake is accurate as of the beginning of Q3 2023.
- MKB Partners: 1.45 million shares. MKB’s stake is accurate as of January 2023.
- FMR: 1.19 million shares. FMR acquired its entire stake during November 2023.
- Valor Equity Associates: 890,998 shares. Valor’s stake is accurate as of Q4 2022.
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On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
