Wednesday was the day when Bird Global, a company that specializes in electric vehicles, submitted a petition for bankruptcy under Chapter 11 of the United States Code. The corporation is referring to the financial turn as “a financial restructuring process aimed at strengthening its balance sheet and better positioning the company for long-term, sustainable growth,” as stated in a release. This is the specific definition that the corporation is using to describe the financial turn.

The electric car firm Bird, which had an initial valuation of $2.5 billion, has entered into a contract with Apollo Global Management and second-lien lenders that will provide the company with $25 million in financing to assist it in continuing to operate while it is undergoing its restructuring. This will allow the company to continue to operate while it is undergoing its restructuring.

The filing for bankruptcy will also be utilized by Bird to go through a procedure to analyze their assets, which will involve participating in a “stalking horse” transaction with their existing lenders. This will be done in order to evaluate their assets.

Bird is a company that provides a short-term rental service for a variety of modes of transportation, including electric scooters and electric bicycles, in a total of 350 sites. The firm was initially established in the year 2017. The organization was responsible for the upkeep of a fleet of around 3,500 scooters that were distributed throughout the entirety of the city of Austin. The year 2021 was the year that the firm completed its initial public offering with the support of investors from Silicon Valley.