On December 18, 2024, The Lion Electric Company (TSX:LEV) obtained CCAA protection, citing $500 million in consolidated debt. The electric vehicle manufacturer, struggling with declining deliveries, subsidy delays, and EV market volatility, paused production at its Illinois plant and laid off 400 employees.

The filing followed the maturity of its loan with Finalta Capital Fund, L.P. and a CDPQ subsidiary, as well as the expiry of covenant relief under its revolving credit agreement with National Bank of Canada, Bank of Montreal, and Fédération des Caisses Desjardins du Québec. Despite long-term debt financing and equity investments, Lion Electric never achieved profitability or positive cash flow.

The company launched a Sale and Investment Solicitation Process (SISP) and will seek Chapter 15 recognition in the U.S.

Deloitte is the monitor. Legal counsel includes Stikeman Elliott for Lion Electric, Lavery de Billy for the monitor, Norton Rose Fulbright for CDPQ-Finalta, Fasken for the lender syndicate, and McCarthy Tétrault for Groupe Mach Inc. and Fondation Mirella & Lino Saputo.