This article was last updated on April 16, 2022
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In an announcement made on Monday, the city of Montreal revealed that Bixi has filed for bankruptcy protection. It was added that the city is planning to get the bike-sharing service provided by the non-profit company to resume on Montreal streets this year. Mayor Denis Coderre is anticipated to give his personal remarks on the situation at a press conference at 2:30 p.m.
According to the claims, Bixi owes the city of Montreal $31.6 million on a $37-million city loan, along with another $6.4 million on a separate line of credit, which means that a total of $38 million of Montreal taxpayer’s money is on the line. On the other hand, Bixi also owes its suppliers about $9 million. In an official letter sent by the city on Jan 15, it asked to return the money owed. However, the company filed for bankruptcy protection on Monday (Jan. 20). According to the city, Bixi currently has 30 days to raise money by selling its international operations, but the protection can be extend for up to six months.
A consequent announcement made by the city on Monday alleged that it is negotiating with Bixi to ensure the service can return to Montreal streets, as scheduled in April, although terms of those negotiations were not described. The company’s international operations are playing a major role in its decline as foreign customers owe Bixi $5.6 million, which have caused other cities to halt payment because they are not happy with delays in promised updates in back-end software. New York City owes $3 million, Chicago, $2.6 million.
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