Vancouver’s Bixi plans in limbo after company declares bankruptcy

Vancouver’s plans to launch a Bixi bike-sharing program in the city this year are up in the air after the company filed for bankruptcy protection on Monday. Bixi owes the city of Montreal, which controls the company, $31.6 million from the $37 million the city loaned the non-profit outfit. Bixi also owes $9 million to suppliers.

The financial failure of Bixi makes the Vancouver plan – already behind its original schedule – uncertain. The city had committed $6 million to the project with $500,000 expected for annual costs. Portland, Oregon’s Alta company was supposed to run Vancouver’s program using Bixi’s bikes. Recently, the plan came under renewed scrutiny as Bixi faced financial trouble.

Vision Vancouver councillor Heather Deal pointed out that no deal had been signed that would put tax dollars at risk. Vancouver mayor Gregor Robertson issued a statement that the city had never approved bike share loan guarantees.

The city has yet to dump the project. Deal said that Alta can still find alternate suppliers of bikes, stations and other infrastructure. Robertson assured Vancouverites that the program would only be launched if Alta can satisfy the city that the plan is still financially viable.