Lion Electric files for creditor protection
Ongoing financial challenges led Lion Electric and its subsidiaries to file for creditor protection under the Companies’ Creditors Arrangement Act (CCAA) with the Superior Court of Quebec, the all-electric medium- and heavy-duty vehicle manufacturer announced in a news release.
The company is also seeking recognition of the proceedings in the U.S. under Chapter 15 of the Bankruptcy Code.
As part of the filing, Lion is requesting court approval for a formal sale and investment solicitation process (SISP) to allow interested parties to submit proposals. This process aims to identify the best possible transaction for the company and its stakeholders.
The application also seeks a stay of proceedings to halt creditor claims and contractual rights enforcement, as well as interim debtor-in-possession (DIP) financing from senior lenders to fund operations and the SISP during the restructuring process, Lion said in a release.
Deloitte Restructuring Inc. has been proposed as the monitor to oversee the CCAA proceedings, while Lion’s management would continue day-to-day operations under the monitor’s oversight.
The company first announced it would be filing for creditor protection on Dec. 17.
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