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Lion Electric (NYSE: LEV) has announced a significant workforce reduction of approximately 150 employees across Canada and the United States, affecting all departments. This reduction leaves the company with around 160 employees who will primarily focus on customer support, maintenance, and servicing of school buses and trucks.
The layoffs are implemented as part of Lion's ongoing Companies' Creditors Arrangement Act (CCAA) proceedings and are required under the terms of the debtor-in-possession (DIP) financing provided by the company's senior revolving credit agreement lenders. The financing is intended to fund both the sale and investment solicitation process (SISP) and the company's operations during restructuring.
This follows the Superior Court of Quebec's initial order on December 18, 2024, granting CCAA protection to Lion and its subsidiaries, along with approval for the SISP.
Lion Electric (NYSE: LEV, TSX: LEV), a manufacturer of electric medium and heavy-duty urban vehicles, has obtained creditor protection under the Companies' Creditors Arrangement Act (CCAA). The Superior Court of Quebec issued an initial order appointing Deloitte Restructuring as monitor. The company will seek recognition of CCAA proceedings in the US under Chapter 15 of the Bankruptcy Code.
The court approved a sale and investment solicitation process (SISP) and debtor-in-possession financing. Management will continue operations under monitor oversight, maintaining customer support for school buses and trucks. Trading of LEV shares has been suspended on both NYSE and TSX, with both exchanges initiating delisting proceedings.
Lion Electric (NYSE: LEV) (TSX: LEV), a manufacturer of electric medium and heavy-duty urban vehicles, has filed for creditor protection under the Companies' Creditors Arrangement Act (CCAA) with the Superior Court of Quebec. The company seeks recognition of CCAA proceedings in the US under Chapter 15 of the Bankruptcy Code. The application includes a formal sale and investment solicitation process (SISP) to determine the best transaction for stakeholders.
The company has requested a stay of proceedings, including creditor claims, and authorization for interim debtor-in-possession financing. Deloitte Restructuring Inc. will be appointed as monitor. Trading of Lion's securities on both TSX and NYSE has been halted, with TSX initiating a delisting review under its expedited process.
Lion Electric (NYSE: LEV) (TSX: LEV) announced the expiry of its covenant relief period under its senior revolving credit agreement and the maturity of its Finalta CDPQ Loan Agreement on December 16, 2024. Due to no alternatives materializing and no further amendments being obtained, the company is now in default of its credit agreements. Lion Electric is currently seeking creditor protection under the Companies' Creditors Arrangement Act to restructure its business and pursue a formal sales process. Trading of the company's shares has been halted on both TSX and NYSE pending a review of listing suitability.
Lion Electric (NYSE: LEV) has entered into a definitive agreement to sell its innovation center facility in Mirabel, Québec, to Aéroport de Montreal for C$50 million. The net proceeds from the sale will be used to partially repay the company's senior secured non-convertible debentures issued in July 2023. The transaction, expected to close by end of 2024, will reduce Lion's long-term debt but won't affect its short-term liquidity and cash position. The debenture holders currently hold a first-ranking hypothec over the innovation center facility's immovable/real rights.
Lion Electric (NYSE: LEV) has secured amendments to its credit agreements, extending the suspension of financial covenants and loan maturity dates to December 16, 2024. The company is actively evaluating restructuring options, including potential business sale, strategic investments, or seeking creditor protection. Additionally, Lion announced a significant workforce reduction of approximately 400 employees through temporary layoffs across Canada and the United States, leaving about 300 employees focused on bus manufacturing, sales, and customer service. The company's Joliet, Illinois facility operations will be suspended as part of these measures.
The New York Stock Exchange (NYSE) has initiated delisting proceedings for Lion Electric's warrants (LEV.WS) expiring May 6, 2026, citing 'abnormally low selling price' levels. Trading of these warrants has been immediately suspended. The company's common shares (LEV) and another series of warrants expiring December 15, 2027 (LEV.WS.A) will continue trading on the NYSE. Lion Electric is considering appealing this decision through a NYSE Board Committee review. The NYSE will apply to the SEC for warrant delisting after completing all procedures.
Lion Electric (NYSE: LEV) has secured amendments to its senior credit instruments, including the Revolving Credit Agreement and Finalta CDPQ Loan Agreement. The changes extend the financial covenant suspension period to November 30, 2024, and remove minimum liquidity requirements. The company warns it may not comply with credit terms after the relief period or repay the Finalta CDPQ Loan at maturity. Lion Electric is in discussions with lenders about restructuring and exploring alternatives, including potential business sale, strategic investments, or asset sales.
Lion Electric (NYSE: LEV) reported challenging Q3 2024 results with significant declines across key metrics. Revenue dropped to $30.6 million from $80.3 million in Q3 2023, with vehicle deliveries decreasing to 89 units from 245. The company posted a gross loss of $16.0 million compared to a $5.4 million profit last year, while net loss widened to $33.9 million from $19.9 million. The vehicle order book stands at 1,590 units worth approximately $420 million. The decline in performance was attributed to EPA timing issues, subsidy delays, and production challenges with new vehicle platforms.
The Lion Electric Company (NYSE: LEV) (TSX: LEV), which manufactures all-electric medium and heavy-duty urban vehicles, has scheduled its third quarter 2024 earnings release for November 6, 2024, after market close. The company will host a conference call and webcast at 5:30 p.m. Eastern Time on the same day to discuss the results. Interested parties can join via phone using the numbers (404) 975-4839 or toll-free (833) 470-1428 with Access Code 946933, or watch the live webcast on the company's website.
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