Deadline to meet its loan obligations is Saturday
The deadline to meet its obligations to these creditors is Saturday. But Lion Electric hasn’t been able to find additional funding yet, according to Quebec’s economy minister, raising the odds it will seek creditor protection.
The Quebec government has supported the firm with committed investments totalling $192 million — and has said it’s willing to do more to save the firm, but only if other private investors also participate.
“We won’t go alone,” Economy Minister Christine Frechette said on Radio-Canada Thursday.
Chief executive Marc Bedard acknowledged on a Nov. 6 conference call that the ability to continue was in doubt if it couldn’t raise more money. The company didn’t respond to a request for comment Friday.
Shares are down by almost 90 per cent since the beginning of the year, trading at less than 20 cents in New York.
Supply chain disruptions, urgent financing needs, scaling issues and a dispute with a battery supplier were among the company’s problems after it went public by merging with a special purpose acquisition company in 2021.
Since then, the company has also deployed close to US$250 million in capital expenditures as it multiplied new models, and built an electric bus manufacturing plant in Joliet, Ill., and a battery pack assembly plant in Mirabel, Que.