Lion Electric to file for creditor protection

Lion Electric, a Quebec-based manufacturer of electric buses and trucks, says that it plans to file for creditor protection.

Lion Electric, a Quebec-based manufacturer of electric buses and trucks, announced on Tuesday that it plans to file for creditor protection.

In a press release, the Saint-Jérôme-based company said it will file for protection under the Companies' Creditors Arrangement Act (CCAA).

It said its objective was to "restructure its operations and financial affairs" and "conduct a formal process to sell and solicit investments in the company's operations or assets."

Lion Electric had until Monday to come to agreements to repay two loans, one with a syndicate of banks and the other with Finalta Capital and the Caisse de dépôt et placement du Québec.

The deadline for the two loans was extended from Nov. 30 to Dec. 16 to give Lion more time to raise funds, but the company confirmed on Tuesday that "no alternative solution materialized and no further modifications, concessions or waivers had been obtained."

The company added that it was negotiating "with its senior lenders" to obtain additional funds.

Trading in Lion is expected to be suspended on the Toronto and New York stock exchanges.