January 31, 2014 (Montreal, QC) – The company that operates Bixi, Public Bike Share Company (PBSC) is defending the bonuses it paid to 38 employees in December prior to filing for bankruptcy protection in January. Some 38 employees received a total amount of $223,000 according to PBSC’s interim CEO, Michel Philibert who received $14,913 himself.

Philibert claims that the amounts paid are not really bonuses, but rather performance-related supplements that are written into employees’ contracts. He explained further that paradoxically, in some ways 2013 was a “good year” for Bixi with revenues of $60 million and the public bike share system expanding to another five cities worldwide.

Montreal’s new mayor, Denis Coderre, said that he is angry that PBSC paid such supplementary sums to employees before seeking protection by declaring bankruptcy, but admits it is unlikely the city can recover the money. “This was not elegant, PBSC should have informed the city,” said Coderre.

Opposition leader Richard Bergeron, who has long criticized the lack of transparency at Bixi, also called the payments “unacceptable.” An opposition councillor, Marc-Andre Gadoury, told CBC that the previous Tremblay administration should not have used taxpayers’ money to help start up a private company (PBSC).

PBSC owes about $50 million to various creditors, including $31.2 million to Montreal. As reported previously, PBSC also owes $843,878 to Quebec-based bike manufacturer Cycles Devinci – read more here.

Coderre remains nonetheless optimistic that Montreal can save the 2014 Bixi season. The rental bike season in Montreal begins in late April and extends to November.

Read more in Le Devoir (French) here.