Quebec-based Electric Vehicle Manufacturer Seeks Creditor Protection Following Default on Debt Repayments
The Lion Electric Co. has announced its intention to file for protection under the Companies’ Creditors Arrangement Act.
The company, known for producing electric school buses, has acknowledged its debt default and is currently in discussions with its senior lenders to secure additional funding through a new debtor-in-possession credit facility.
As part of its restructuring efforts, Lion Electric Co. plans to initiate a formal sales and investment solicitation process.
Earlier this month, the company temporarily laid off 400 employees and halted production at its Illinois plant following a two-week extension from its lenders to explore alternative options. The remaining 300 employees will focus on bus manufacturing, sales, and delivery.
Trading of Lion Electric shares on the Toronto Stock Exchange was suspended due to failure to meet exchange requirements.
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