Canada / USA – In Q3 2024, we announced that Canadian electric vehicle manufacturer, The Lion Electric Co, based in Saint-Jérôme, Quebec had cut 300 jobs, representing 30% of its workforce. Late last year things got worse for the OEM as the company formally defaulted on its credit repayments to creditors*. In late December 2024, Lion Electric obtained creditor protection under the Companies' Creditors Arrangement Act (CCAA) in Canada and filed for Chapter 15 bankruptcy in the United States. Trading in Lion Electric shares on both the Toronto and New York Stock Exchanges was halted for “failure to maintain exchange requirements”, with formal delisting processes currently underway. Despite these challenges, the Lion Electric Board of Directors are actively seeking to restructure its business and financial affairs to continue operations. This means trying to secure additional funds. This crisis all stemmed from cash flow issues and poor financial performance in 2024.

*The company has two major loans: one from a syndicate of banks, and the other from Finalta Capital and Quebec's pension fund manager — Caisse de dépôt et placement du Québec.