Lion Electric defaults on debt, plans to seek creditor protection
Lion Electric, a Quebec-based manufacturer of electric trucks and buses, says it expects to seek protection from creditors under the Companies’ Creditors Arrangement Act.
The company says it has defaulted on its debt and is in talks with its senior lenders to obtain additional funds for a new debtor-in-possession credit facility.
It says it plans to restructure its business and pursue a formal sales and investment solicitation process.
In early December, Lion Electric announced it had reached an agreement to sell its Mirabel, Que., innovation center for $50 million and would use the proceeds to pay down its debt.
The company temporarily laid off 400 employees and shut down production at its Illinois plant earlier this month after getting a two-week reprieve from its lenders to explore its alternatives.
The company said at that time that its 300 remaining employees would focus on bus manufacturing, sales and delivery.
Trading in Lion Electric shares on the Toronto Stock Exchange was halted for failure to maintain exchange requirements.
- With additional files from TruckNews.com