Lion Electric has announced that it plans to apply for creditor protection under the Companies' Creditors Arrangement Act.

The maker of electric school buses has said it is struggling to pay its debts and is in talks with its main lenders to obtain additional financing to establish a credit facility for debtors.

The company has announced that it plans to restructure its business and begin the formal process of asking for sale and attracting capital.

Lion Electric recently laid off 400 workers and shut down production at an Illinois plant after receiving a two-week grace period from lenders to explore options.

At the time, the company announced that the remaining 300 employees would focus on the production, sales and delivery of the buses.

Shares of Lion Electric have been suspended from trading on the Toronto Stock Exchange due to non-compliance with the stock exchange's requirements.

This report was first published by the Canadian news agency on December 17, 2024.

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