Lion Electric (LEV) announced that the Superior Court of Quebec has issued an initial order granting the company and its subsidiaries protection under the companies’ Creditors Arrangement Act, or CCAA. Deloitte Restructuring has been appointed pursuant to the initial CCAA order as monitor of the company. The company and its subsidiaries also intend to seek recognition of the CCAA proceedings in the U.S. under Chapter 15 of the Bankruptcy Code. The Court also issued an order approving a sale and investment solicitation process in respect of the company’s business or assets to provide interested parties with the opportunity to submit proposals. In addition, the Initial Order provides for a stay of proceedings in favor of the company and its subsidiaries and the approval of debtor-in-possession financing provided by the lenders under the company’s syndicated senior revolving credit agreement to fund the SISP and the company’s operations during the restructuring process. While under CCAA protection, management of the company will remain responsible for the day-to-day operations of the company under the oversight of the Monitor. Trading in the common shares and other listed securities of the company on the TSX and the NYSE has been suspended. The TSX has put the company under delisting review under its expedited review process and the NYSE has commenced delisting proceedings against the company. It is anticipated that trading in the company’s listed securities will continue to be suspended until completion of the review and proceedings undertaken by the TSX and the NYSE.
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Read More on LEV:
- Lion Electric trading halted, news pending
- Lion Electric Seeks Creditor Protection Amid Trading Halt
- Lion Electric files for creditor protection under CCAA
- Lion Electric Faces Defaults and Initiates Restructuring
- Lion Electric to initiate restructuring proceedings under the CCAA
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