MONTREAL — The Lion Electric Company (NYSE: LEV) (TSX: LEV) (“Lion” or the “Company”), a leading manufacturer of all-electric medium and heavy-duty urban vehicles, announced today that the Company and its subsidiaries have applied to the Superior Court of Quebec (Commercial Division) (the “Court”) for an initial order to seek protection from their creditors under the Companies’ Creditors Arrangement Act (“CCAA”). The Company and its subsidiaries also intend to seek recognition of the CCAA proceedings in the United States under Chapter 15 of the Bankruptcy Code.

In its application for an initial order, the Company seeks the approval of a formal sale and investment solicitation process (“SISP”) in order to provide interested parties with the opportunity to submit proposals with a view to enabling the Company and its senior lenders to determine the highest and best available transaction for the Company and its stakeholders.

The initial order application seeks, among other things, a stay of proceedings in favor of the Company and its subsidiaries, including a stay of creditor claims and exercise of contractual rights, and the authorization of an interim debtor-in-possession (DIP) financing to be provided by the lenders under the Company’s senior revolving credit agreement in order to fund the SISP and the Company’s operations during the restructuring process. Approval is also being sought for the appointment of Deloitte Restructuring Inc. as monitor to oversee the CCAA proceedings and report to the Court. While under CCAA protection, management of the Company will remain responsible for the day-to-day operations of the Company under the oversight of the monitor.

This announcement follows the press release issued by the Company on December 17, 2024 announcing the expiry of the covenant relief period under the Company’s senior revolving credit agreement and maturity of the Company’s loan agreement with Finalta Capital and Caisse de dépôt et placement du Quebec.

Trading in the common shares and other listed securities of the Company on the Toronto Stock Exchange (“TSX”) and the New York Stock Exchange (the “NYSE”) has been halted. The TSX has also put the Company under delisting review under its expedited review process. It is anticipated that trading in the Company’s listed securities will continue to be halted until completion of the review undertaken by the TSX and the NYSE regarding the suitability of the Company for listing on the TSX and the NYSE.

About Lion Electric

Lion Electric is an innovative manufacturer of zero-emission vehicles, including all electric school buses. Lion is a North American leader in electric transportation and designs, builds and assembles many of its vehicles’ components, including chassis, battery packs, truck cabins and bus bodies.

Always actively seeking new and reliable technologies, Lion vehicles have unique features that are specifically adapted to its users and their everyday needs. Lion believes that transitioning to all-electric vehicles will lead to major improvements in our society, environment and overall quality of life.

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The deadline passed for Lion Electric Company to repay loans needed to overcome hundreds of millions in debt, but the school bus manufacturer is not heading into bankruptcy, a company spokesperson said.

The statement made to School Transportation News on Tuesday came amid a Lion press release earlier in the day that highlighted use of the Companies Credit Arrangement Act (CCAA), a Canadian federal law dating back to 1933 that allows insolvent companies to avoid liquidation. This occurs through court-directed compromise or arrangement made by a debtor company and its secured creditors.

Lion on Wednesday formally applied for CCAA protection. It also said it will seek recognition of the CCAA process under chapter 15 of the U.S. bankruptcy code.

In the press release on Tuesday, Lion said it “is currently in discussions with its senior lenders to obtain additional funds pursuant to a new debtor-in-possession credit facility and expects to seek creditor protection” under the CCAA as it seeks to restructure its business and financial affairs. Lion added it pursues a formal sales and investment solicitation process for the company’s business or assets.

The Lion spokesperson referred to the CCAA proceedings as a “stable and structured environment” for various restructuring measures under a Revolving Credit Agreement with two lenders represented by the National Bank of Canada and a loan agreement with Finalta Capital Fund that expired on Monday. No timeline was given for when the CCAA agreements will be finalized.

On Dec. 1, Lion announced the latest of four amendments to the Revloving Credit Agreement and an extension of the Finalta Capital loan agreement, a halt to all production at its manufacturing plant in Joliet, Illinois, and the laying off an additional 400 workers on top of the 120 employees laid off in April. The company has trimmed its workforce from nearly 1,300 employees to about 300.

A separate SEC filing that same day announced the Nicolas Brunet resigned as president.
Four days later, Lion said it reached an agreement to sell its Quebec innovation center for $35 million U.S. The company noted in its third-quarter financial results total liabilities of $500 million and a net loss of nearly $75 million as of Sept. 30.

Related: Brunet Resigns as Lion Electric President Amid Company Battle to Stay Solvent
Related: Updated: Lion Electric Suspends Manufacturing Operations at Joliet Plant
Related: NYSE to Commence Delisting Proceedings with Respect to the Warrants of Lion Electric

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MONTREAL — The Lion Electric Company (NYSE: LEV) (TSX: LEV) (“Lion” or the “Company”), a leading manufacturer of all-electric medium and heavy-duty urban vehicles, announced today the expiry of the previously announced covenant relief period under its senior revolving credit agreement entered into with a syndicate of lenders represented by National Bank of Canada, as administrative agent and collateral agent, and including Bank of Montreal and Federation des Caisses Desjardins du Québec (the “Revolving Credit Agreement”), as well as the maturity of the Company’s loan agreement entered into with Finalta Capital Fund, L.P., as lender and administrative agent, and Caisse de dépôt et placement du Quebec (through one of its subsidiaries), as lender (the “Finalta CDPQ Loan Agreement”).

The company had previously announced on Dec. 1, 2024 amendments to the Revolving Credit Agreement and the Finalta CDPQ Loan Agreement in order to extend the covenant relief period and the maturity date of the Finalta CDPQ Loan Agreement to Dec. 16, 2024, which provided the company with additional time to continue to actively evaluate potential alternatives relating to a restructuring of its obligations, a sale of the business or certain of its assets, strategic investments and/or any other alternatives. As no such alternatives have materialized and no further amendments, concessions or waivers have been obtained, the expiry of the covenant relief period and re-introduction of the financial covenants previously applicable under the Revolving Credit Agreement as well as the maturity of the Finalta CDPQ Loan Agreement on Dec. 16, 2024 result in the company being in default pursuant to the terms of the Revolving Credit Agreement, the Finalta CDPQ Loan Agreement and other debt instruments providing for cross-default or cross acceleration provisions, and in the company’s lenders having the ability to exercise their rights and request immediate repayment of amounts borrowed by the company.

As a result of the foregoing, the company is currently in discussions with its senior lenders to obtain additional funds pursuant to a new debtor-in-possession credit facility and expects to seek creditor protection under the companies’ Creditors Arrangement Act in order to restructure its business and financial affairs and pursue a formal sales and investment solicitation process in respect of the company’s business or assets.

Trading in the common shares and other listed securities of the Company on the Toronto Stock Exchange (“TSX”) and the New York Stock Exchange (the “NYSE”) has been halted and it is anticipated that the trading thereof will continue to be halted until a review is undertaken by the TSX and the NYSE regarding the suitability of the Company for listing on the TSX and the NYSE.

About Lion Electric

Lion Electric is an innovative manufacturer of zero-emission vehicles, including all electric school buses. Lion is a North American leader in electric transportation and designs, builds and assembles many of its vehicles’ components, including chassis, battery packs, truck cabins and bus bodies.

Always actively seeking new and reliable technologies, Lion vehicles have unique features that are specifically adapted to its users and their everyday needs. Lion believes that transitioning to all-electric vehicles will lead to major improvements in our society, environment and overall quality of life.

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As Lion Electric attempts to stay afloat amid hemorrhaging cash and rising debt, the company announced a Quebec innovation center is being sold amid the latest workforce reduction that halted production at an Illinois electric vehicle factory that opened not quite a year and a half ago.

On Sunday, Lion announced the latest amendments to its senior revolving credit agreement, the fourth such move this year, extending the maturity agreement with  lenders from Nov. 30 to Dec. 16. Lion said this will allow the company to maintain minimum liquidity needs for continued operation.

“Such additional liquidity will also provide the company with additional time to continue to actively evaluate potential alternatives relating to a restructuring of its obligations, a sale of the business or certain of its assets, strategic investments and/or any other alternatives, including seeking creditor protection … There can be no assurance that the Company will be successful in pursuing and implementing any such alternatives, nor any assurance as to the outcome or timing of any such alternatives,” according to a press release.

Lion also announced it was temporarily laying off 400 additional employees in both the U.S. and Canada. The company laid off 520 workers earlier this year. The latest workforce reduction suspends all production at the Joliet, Illinois, facility, which opened in July 2023 to much fanfare.

The company added that it has approximately 300 employees remaining that will focus on bus manufacturing, sales, service, delivery and maintenance.

On Thursday, Lion said it reached a definitive agreement to sell its innovation center in Mirabel, Quebec to Aéroport de Montreal for $50 million Canadian, about $35.65 million.

“As a result, while the transaction is expected to reduce [Lion’s] long-term indebtedness, it will not impact the company’s short-term liquidity and cash position,” the statement read.

On Nov. 30, the New York Stock Exchange began delisting Lion warrants citing “abnormally low selling price” levels. Since September, company revenue is down nearly 62 percent, with net income down 71 percent.

Lion was the first all-electric school bus manufacturer to reach market in 2017. It has over 2,200 total electric vehicles including trucks on the road.

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EDMONTON, Canada – As part of its continued commitment to safety and giving back to the community, Stock Transportation donated two buses for live emergency training exercises. A total of 80 individuals from the Edmonton Police Service, Edmonton Fire Department, as well as the Emergency Medical Services (EMS) and Hazardous Material Response teams participated in the emergency exercises. A special thanks to Kimberly Van Veld, General Manager of Stock Transportation’s Calgary location, and former safety supervisor of the Edmonton location, who played a pivotal role in planning the event over the past year and contributing to its success.

The emergency training exercises included two components. In the first, emergency teams responded to staged bus accidents involving an oil tanker truck with injured passengers that were roleplayed by Stock Transportation’s bus drivers. To replicate the appearances of injuries, makeup artists from the Alberta Academy of Aesthetics donated their makeup services. Following the staged accidents, the fire department performed hands-on training with the buses where they explored the structure and layout of the buses and used extraction tools to strategically cut and dismantle the buses.

To wrap up the day, our team hosted a BBQ luncheon for all participants as gratitude for their donated services and involvement in keeping the community safe.

“The training for our members was invaluable, and the collaboration between the emergency services teams and the industry was met with positive feedback from all involved,” said Christopher Yuskow, Constable, Edmonton Police Service. “We would like to extend our sincere thanks to Stock Transportation for their generous donation of the two buses, without which this critical scenario-based training could not have taken place.”

“After a year in the making, we were finally able to plan and conduct live emergency training with the Edmonton Police Service and Edmonton Fire Department, along with the local EMS and Hazardous Material Response teams,” said Kimberly Van Veld, Calgary General Manager, Stock Transportation. “The training was everything I imagined and more. It was an insightful experience seeing all the different teams work together to respond to an emergency situation and increased my respect for them ten-fold. I am glad to have played a hand in bringing this training to fruition to aid in the safety and well-being of our community.”

The bus donations were made as part of Stock Transportation’s company-wide Partners Beyond the Bus community outreach program. These bus donations help repurpose retired, non-electric vehicles from the Company’s fleets, further contributing to the Company’s transition to alternative fuel-powered and zero-emission buses.

About Stock Transportation: For over 62 years, Stock Transportation has proudly been delivering safe, efficient, reliable student transportation services to passengers and procuring buses across Canada. Stock transports over 100,000 students daily, operates more than 3,000 school buses and employs 3,700 outstanding team members who provide exceptional service out of seven Customer Service Centers in both urban and rural areas throughout Ontario and Alberta.

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CALGARY, Alberta – Stock Transportation is off to a great start and school year with its partner, the Calgary Catholic School District (CCSD). The school district’s first week of the new school year ended on an overall positive note, with students getting to and from school safely thanks to the tireless work and efforts of Stock Transportation’s team members.

Back in April, Stock Transportation and CCSD announced their newly forged five-year partnership, which includes a total of 80 routes. In addition to Calgary, Stock Transportation also provides student transportation in Edmonton, where it first started providing services in 2011, and all across Ontario, which dates back to 1958.

“Our team was in high spirits and buzzing with excitement from start to finish for the start of the school year,” said Kimberly Van Veld, General Manager, Stock Transportation. “In anticipation of this new partnership, our team members prepared earnestly and diligently in the months, weeks, and days leading up to the first days of school. We’ll continue giving our best every day so that we can get our students to school safely, on time, and ready to learn. Thank you to the community for the warm welcome and to CCSD for their support and trust in our team.”

“We were able to kick off the school year with confidence thanks to the great team at Stock,” said Andrew Hilton, Transportation Manager, Calgary Catholic School District. “Through my interactions with Stock’s team over the last few months, I witnessed the utmost level of professionalism, astuteness, and determination. It is evident to us that Stock’s team holds their responsibility of getting students to and from school safely and reliably to a high regard, so we’d like to again thank them wholeheartedly for their services and dedication. We look forward to growing with Stock and continuing with our mutual goal of providing our community with service excellence.”

About Stock Transportation: For over 62 years, Stock Transportation has proudly been delivering safe, efficient, reliable student transportation services to passengers and procuring buses across Canada. Stock transports over 100,000 students daily, operates more than 3,000 school buses and employs 3,700 outstanding team members who provide exceptional service out of seven Customer Service Centres in both urban and rural areas throughout Ontario and Alberta.

About CCSD: The Calgary Catholic School District (CCSD) is the largest Catholic school district in Alberta, proudly serving approximately 63,000 students in 118 schools located in Calgary, Airdrie, Cochrane, Chestermere and the Rocky View County. CCSD educates and empowers students from kindergarten to Grade 12 through its mission of Living and Learning in our Catholic Faith, so that students, centered in Christ, realize their full potential. For more information, please visit cssd.ab.ca.

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