- 2014- January ( 1 )
The Public Bike System Company files for protection under the Bankruptcy and Insolvency Act
Montréal, January 20, 2014 - The Public Bike System Company (PBSC) announces that it has filed a notice of intention to file for protection under the Bankruptcy and Insolvency Act.
This will allow the company to restructure its business and finances. PBSC will remain in operation during this period of restructuring and will continue to maintain its services to its users.
In addition, the 2014 BIXI Montréal season will not be affected. In the coming days, representatives of PBSC will meet with representatives of the City of Montreal to organize the next season of BIXI and evaluate the best scenarios in order to maintain the value of the of the City’s investment in PBSC.
Users who purchased their subscription at the end 2013 for the 2014 season will be able to use it at the beginning of the season.
Because of the significant deductions of $ 5.6 million from some customers that have affected its liquidity and caused its insolvency, PBSC did not have the choice but to file for bankruptcy. These deductions were caused by delays in the development of its IT solution.No job losses are anticipated at this time.