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Chook International (OTC:BRDS) has filed for Chapter 11 chapter safety to endure restructuring to strengthen its stability sheet, simply two years after the electrical scooter rental firm went public by a SPAC merger.
Apollo International (APO) unit MidCap Monetary and sure current lenders will present $25M in new debtor-in-possession financing. The corporate listed belongings and liabilities of $100M-$500M in a courtroom filing.
Chook (OTC:BRDS) entered right into a stalking horse cope with current lenders, which successfully units a flooring for the corporate’s worth. The bid is topic to raised gives, geared toward maximizing worth for stakeholders. The sale course of is anticipated to be accomplished within the subsequent 90-120 days.
Chook (OTC:BRDS) will function as standard throughout this course of and preserve the identical service for its riders. Chook Canada and Chook Europe aren’t a part of the chapter submitting and can proceed working as regular.
Shares of Chook (OTC:BRDS) have misplaced ~92% in worth YTD and ~100% since their buying and selling debut.
The corporate has been battling a hunch in gross sales, which has eaten into its income regardless of aggressive price cuts. Chook (OTC:BRDS) final month flagged substantial doubt about its skill to proceed as a going concern primarily based on recurring losses and destructive money move from operations for the 9 months ended September 30.
“Chook’s (OTC:BRDS) go-public story has turn into a traditional story of how SPACs grew to become the harbinger of wealth destruction towards initially buoyant expectations of progress,” SA analyst Pacifica Yield warned again in June.