Lion Electric faces liquidation after Quebec refuses to invest more funding

The Canadian Press

· Posted: May 05, 2025 3:13 PM EDT | Last Updated: 1 hr ago

Lion Electric volition precise apt beryllium liquidated pursuing the Quebec government's refusal to put much nationalist funds successful the company, says the court-appointed show for the electric-vehicle maker.

Jean-François Nadon, a restructuring specializer with Deloitte, said successful a Superior Court proceeding connected Monday that authorities assistance would person been a information of immoderate merchantability of the struggling company.

With that anticipation disconnected the table, helium said, it's improbable immoderate purchaser volition measurement guardant with a program to relaunch the St-Jérôme, Que.-based manufacturer, which sought extortion from its creditors successful December.

"The likelihood of a liquidation of assets is precise high," helium said.

Nadon said the government's caller announcement that it would not inject immoderate much nationalist wealth into Lion Electric was a "shock wave" for the company.

News reports past week said a radical of buyers was seeking $24 cardinal from the state to relaunch the electric-vehicle maker. Nadon said determination was "no indication" earlier the government's determination that the buyers would beryllium incapable to unafraid that funding.

But Quebec Economy Minister Christine Fréchette announced Wednesday evening successful a connection connected societal media that it would beryllium irresponsible to connection Lion much nationalist money. She aboriginal told reporters she "would person expected the backstage assemblage to beryllium much involved."

As well, Premier François Legault invoked the instrumentality of U.S. President Donald Trump erstwhile asked astir Lion Electric past week. He suggested Quebec whitethorn request to unbend its targets for electrifying transportation, since the U.S. "isn't making this a priority."

Quebec has already invested heavy successful Lion Electric, and Legault said the state stands to suffer astir $140 cardinal connected the company.

Nadon said helium believes the authorities made its determination due to the fact that of the "socio-political situation" with the U.S., which helium said "limits the enlargement of Lion's concern plan" and created "extremely important risks" for the company's outlook.

Late past week, Nadon said, Deloitte began contacting liquidators and auctioneers who had antecedently been funny successful selling disconnected Lion Electric's assets. They were asked to taxable offers implicit the weekend, and Nadon said helium hopes to person a woody to contiguous to the tribunal adjacent Monday.

Nadon said Lion laid disconnected each but 12 of its employees aft the authorities announced its determination past week. He said the institution is inactive capable to wage its remaining staff, but it was incapable to wage rent for each of its locations connected May 1, adjacent to astir $400,000.

Lion Electric manufactured electrical schoolhouse buses and trucks, and presently has astir 1,175 schoolhouse buses connected the roadworthy successful Quebec. But the institution went done respective rounds of layoffs past twelvemonth and unopen down accumulation astatine a works successful Illinois, earlier entering creditor extortion successful December.

A projected class-action suit filed by Lion Electric shareholders against the company's directors and officers, which claims they misled investors and misrepresented the company's fiscal health, could proceed erstwhile a woody is finalized.