Bankrupt Bixi Montreal Bike Sharing Program

 

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Bixi owes $50M, files for bankruptcy protectionPopular bike-sharing service gets taken over by City of Montreal. The company that owns Bixi — the Public Bike System Company, known in French as the Société de vélos en libre-service (SVLS) — owes $50 million to various creditors, including the City of Montreal.

Coderre said rather that sinking more money into the SVLS, a private company, the city would take over Bixi’s Montreal assets. He said they are worth approximately $11 million. The mayor said he believes Bixi was, and continues to be, a good idea and a valuable public service, but that the company’s financial problems forced him to act now rather than later. The Bixi bikes will still be running throughout 2014 but the city of Montreal is expecting a 1.5 million dollar loss.

Via CBC