City staff want Toronto to take over the embattled Bixi bike-sharing program, according to a confidential report obtained by the Star. According to the report, Bixi Toronto informed city staff in November that it was not able to make its loan payments “over the next few months.”
If the company defaults, Toronto is on the hook for an outstanding loan of $3.9 million.
To protect the city’s interests, staff recommended council allow them to negotiate “an orderly transfer of ownership of the Bixi Toronto program for the purposes of continuing the program.” If a deal cannot be reached, staff asked council to “exercise the city’s rights in the event of insolvency or to assume ownership” should the company default.
A third possibility is to let the company fail. If Bixi Toronto went bankrupt, the bicycles and docking stations could be sold for between $800,000 and $1.2 million.
Montréal exporte son savoir-faire…