EV Maker Lion Wins Temporary Creditor Relief, Halts US Factory
Lion Electric Co., which went public in 2021, has run into a cash crunch while facing supply chain disruptions and a dispute with a battery supplier.
Photographer: Christinne Muschi/BloombergThis article is for subscribers only.
Electric bus manufacturer Lion Electric Co. is temporarily laying off about 400 workers and halting operations at its Illinois factory to save cash after receiving a short-term lifeline from its lenders.
The Saint-Jerome, Quebec-based company made the announcement after a Saturday deadline to meet its obligations to key creditors passed. The extensions until Dec. 16 apply to a credit agreement with a syndicate of lenders and a loan provided by the Caisse de Depot et Placement du Quebec and Finalta Capital Inc., Lion said in a statement Sunday.