Quebec Investors Rescue Bankrupt Electric Bus Maker Lion

A Quebec judge has approved a transaction that will save Lion Electric Co., a bankrupt electric bus manufacturer, from bankruptcy. However, shareholders and most creditors will not receive any proceeds from the deal.

The deal, which was approved during a hearing on Thursday morning, will see Lion Electric's assets sold to a group of Quebec investors. The investors, led by businessman Pierre Karl Peladeau, will provide the funds needed to revive the company and continue its operations.

Lion Electric had been facing financial difficulties due to the COVID-19 pandemic and the decline in demand for electric buses. The company had previously received government subsidies for electric school buses, but these subsidies were suspended due to the pandemic.

The approval of the sale marks the beginning of a new approach for Lion Electric, which will focus on the local market and a product line dedicated exclusively to electric school buses.

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