LION ELECTRIC ANNOUNCES EXPIRY OF COVENANT RELIEF PERIOD AND DEFAULTS UNDER CERTAIN OF ITS SENIOR DEBT INSTRUMENTS

Core Viewpoint - The Lion Electric Company is initiating restructuring proceedings under the Companies' Creditors Arrangement Act (CCAA) due to the expiry of its covenant relief period and the maturity of its loan agreements, leading to a default situation [1][2][3]. Financial Agreements and Defaults - The company had previously amended its Revolving Credit Agreement and Finalta CDPQ Loan Agreement to extend the covenant relief period and maturity date to December 16, 2024, but no viable alternatives for restructuring or business sale have emerged [2]. - The expiry of the covenant relief period has resulted in the re-introduction of financial covenants, placing the company in default under its debt instruments, allowing lenders to demand immediate repayment [2]. Restructuring Efforts - The company is currently in discussions with senior lenders to secure additional funding through a new debtor-in-possession credit facility and plans to seek creditor protection under the CCAA to restructure its business and financial affairs [3]. Trading Status - Trading of the company's common shares on the Toronto Stock Exchange (TSX) and the New York Stock Exchange (NYSE) has been halted pending a review of the company's suitability for listing [4]. Company Overview - Lion Electric is a manufacturer of zero-emission vehicles, including all-electric school buses, and is recognized as a North American leader in electric transportation [5][6].