After major layoffs, Quebec’s Lion Electric to enter creditor protection | CBC News
Lion Electric, an electric bus and truck manufacturer based in Quebec, is entering creditor protection.
The publicly traded company, headquartered in Saint-Jérôme, north of Montreal, said in a statement Tuesday it was unable to find a way to repay its debts.
The company had until Dec. 1 to pay back its loans but was granted an extension until Dec. 16. Lion Electric had said it would use this delay to explore the sale of the company or some of its assets.
The loans were provided by the financial institution Finalta Capital and the Caisse de dépôt et placement du Québec (CDPQ), the province’s pension fund manager.
As of early December, Lion Electric’s debt currently stood at more than $411 million.
Entering creditor protection plunges the company further into turmoil and raise questions about its future.
The company has laid off a total of 920 employees in 2024.
Earlier this month, 400 workers were laid off, accounting for half of the company’s remaining workforce. As a result, manufacturing operations at the company’s plant in Illinois were halted.
School bus operators have expressed concerns that if Lion Electric shuts down, they’ll be stuck with a fleet of buses that are impossible to maintain since only the company’s mechanics are trained to do that.
The company has been the beneficiary of government support. Quebec has invested $177 million into the company, while Ottawa has paid out $30 million.
Saint-Jérôme, Que., based Lion Electric is facing major financial difficulties and has laid off hundreds of workers. Bus operators are worried if the company doesn’t recover, there will be no one to maintain the buses it already has on the road. Only Lion mechanics are allowed to work on them.
Written by Antoni Nerestant
