Bankruptcy of Bike Share Company Will Not Immediately Affect Systems in U.S. Cities

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[font size="1"]A Citi Bike station on Canal Street (Kate Hinds)[/font]

Montreal's bike share company, which also supplies equipment and technology to the largest bike share systems in the U.S., has filed for bankruptcy—but transportation officials in the U.S. say that won't have any immediate impact on operations.

Public Bike System Company (PBSC), which owns Bixi, Montreal's bike share system, has been placed under bankruptcy protection in Canada. The firm is deeply indebted to Montreal after borrowing money from the city. PBSC’s creditors are owed a total of 46 million in Canadian dollars, according to a list (see below) obtained by TVA Nouvelles in Canada. Some cities have withheld payments to the company due to ongoing system problems (remember NYC's computer glitches?), contributing to the company’s financial shortfall.

Alta Bicycle Share (ABS), which operates a number of systems across the U.S., reportedly wants $11 million from PBSC for software delays, but would not confirm that in a phone call with a reporter. Despite the dispute, Alta says its own bike share operations would be unaffected.

“Our systems across the country—in New York City, Chicago, Washington, D.C., Boston, the Bay Area, Columbus, OH, and Chattanooga, TN—are up and running and ABS will ensure that they continue to operate without interruption. Having served more than 15 million trips to date, we’re focused on continuing to provide a convenient, fast, fun, and affordable means of transit,” the Alta statement said. ......................(more)

The complete piece is at: http://www.wnyc.org/story/bankruptcy-bike-share-tech-company-will-not-immediately-affect-systems-us-cities/