A group of Quebec-based investors have come together to salvage what remains of Lion Electric, the electric school bus manufacturer that late last year filed for creditor protection under Canada’s CCAA process.
The company announced last night that the consortium of investors was the successful bidder under the sale and investment solicitation process. While details on who is involved in the consortium were not released, it was disclosed that former Lion Electric director Pierre Wilkie was among those involved in the consortium.
READ: Lion Electric To File For Creditor Protection After Defaulting On Debt
Lion Electric went public in 2021 amid the EV-craze that hit public markets, backed by provincial and federal funds that were looking to support homegrown EV-products. The Quebec government is expected to lose a $140 million investment in the company, while the federal government will lose an estimated $50 million, alongside losses of $117.1 million and $22.7 million that are expected for National Bank and Caisse de Dépôt et Placement du Québec, respectively.
Lion Electric will no longer be a reporting issuer upon the closing of the transaction.
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