A banner for the electrical scooter rental firm Chook is displayed outdoors of the New York Inventory Alternate (NYSE) as the corporate goes public by way of a SPAC on November 05, 2021 in New York Metropolis.
Spencer Platt | Getty Photographs
The electrical scooter firm Chook, as soon as valued at $2.5 billion by buyers, filed for Chapter 11 chapter safety in Florida federal court docket Wednesday.
The corporate has entered right into a “stalking horse” settlement, which units a ground for Chook’s worth, with its present lenders, in response to a launch. Chook mentioned it can use the chapter continuing to facilitate a sale of its belongings, which it expects to finish throughout the subsequent 90 to 120 days.
Chook’s electrical scooters are touted as an environmentally pleasant various to driving and different types of public transit. They exploded in recognition earlier than the onset of the Covid pandemic, and the corporate raised greater than $275 million in 2019, which pushed its valuation to $2.5 billion.
However after clients stopped using as they had been compelled into lockdown in 2020, Chook struggled to recuperate. The corporate went public by way of a merger with a particular objective acquisition firm in 2021, however its share worth tumbled.
Chook’s chapter proceedings come after the New York Inventory Alternate delisted the corporate in September. Chook did not adjust to the change’s necessities after it was unable to maintain its market capitalization above $15 million for 30 consecutive days.
The corporate’s shares started buying and selling on the over-the-counter change later that month. As of Wednesday, the inventory was buying and selling at lower than $1 per share.
Chook Canada and Chook Europe should not a part of the corporate’s Wednesday submitting and can “proceed to function as regular,” in response to the discharge.
