LION ELECTRIC FILES APPLICATION FOR CREDITOR PROTECTION UNDER THE CCAA

Core Viewpoint - The Lion Electric Company has applied for creditor protection under the Companies' Creditors Arrangement Act (CCAA) and intends to seek recognition of these proceedings in the United States under Chapter 15 of the Bankruptcy Code, indicating significant financial distress and a restructuring effort [1][2]. Group 1: CCAA Proceedings - The company is seeking approval for a formal sale and investment solicitation process (SISP) to allow interested parties to submit proposals, aiming to determine the best available transaction for the company and its stakeholders [2]. - The application for the initial order includes a request for a stay of proceedings, which would halt creditor claims and contractual rights, and authorization for interim debtor-in-possession (DIP) financing to support operations during the restructuring [3]. - Deloitte Restructuring Inc. is proposed to be appointed as the monitor to oversee the CCAA proceedings, while the company's management will continue to handle day-to-day operations under the monitor's oversight [3]. Group 2: Financial Context - This announcement follows the expiration of the covenant relief period under the company's senior revolving credit agreement and the maturity of its loan agreement with Finalta Capital and Caisse de dépôt et placement du Quebec, highlighting the company's deteriorating financial situation [4]. - Trading of the company's common shares on the Toronto Stock Exchange (TSX) and the New York Stock Exchange (NYSE) has been halted, with the TSX initiating a delisting review, indicating concerns about the company's compliance with listing requirements [5]. Group 3: Company Overview - Lion Electric is recognized as a leading manufacturer of zero-emission vehicles, including all-electric school buses, and is a North American leader in electric transportation [6][7].