Lion Electric eyes rescue with new investor-backed takeover plan

Lion Electric may avoid liquidation after a takeover offer was submitted by a group of investors led by Montreal businessman Vincent Chiara, coming from the real estate business.

Lion Electric filed for creditor protection on December 18, 2024, with debts exceeding $411 million. A previous deal collapsed after the Quebec government declined to inject further funds. As of early May, the company looked on the brink of bankruptcy. The new offer comes with provincial backing via the renewal of a subsidy program for electric school buses. This support strengthens Lion’s core market viability, as Lion is Canada’s only manufacturer of such vehicles.

Lion Electric: investors are ready

Indeed, as reported on BNNBloomberg, “According to court documents, the buyers have reached an agreement with the Quebec government to renew a recently expired subsidy program for electric school buses”.

According to media reporting (first one was Bloomberg) investor group had initially requested $24 million in public funds. Without that funding, the company’s court monitor had warned liquidation was likely. With government incentives reinstated, the revised proposal is now under court review. A decision is expected soon.