Lion autopsy: here’s what you need to know about manufacturer claims

The Quebec electric vehicle manufacturer Lion, which has just protected itself from its creditors, was in debt to the point where it simply could no longer meet its financial obligations, reveal court documents consulted by The Journal.

• Also read: It’s official: Lion Électrique protects itself from its creditors

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• Also read: Battery sector: school transporters roar at the end of Lion

While the secured creditors could hope to receive $216 million (including the syndicate of lenders of the National Bank with the Bank of Montreal and Desjardins, $117 million, CDPQ and Finalta Capital, $22.7 million, and the Mach Group, 69 M$), others risk losing big.

Here are examples of public funds swallowed up in the Saint-Jérôme company.

As of April 4, Marc Bédard, founder of Lion, held 11.47% of Lion’s shares, compared to 34.11% of Power Energy Corporation, according to court documents filed this week.

Photo JOËL LEMAY

Press conference regarding the announcement of a battery pack assembly plant for the Compagnie Électrique Lion of Saint-Jérôme, in Montreal, Monday March 15, 2021. In this photo: François Legault (Prime Minister of Quebec) and Justin Trudeau (Prime Minister of Canada) JOEL LEMAY/AGENCE QMI

Photo Agence QMI, JOËL LEMAY

Unsecured debts

Ottawa

Among its unsecured creditors, Lion owed $21.8 million to the Strategic Innovation Fund as of September 30. As of mid-November, it owed $7.4 million to Export Development Canada.

Québec

At the end of September, Lion owed a loan of $27.3 million to Investissement Québec (IQ) and another of $3.8 million, still to IQ, as part of the ESSOR Program.

IQ, the FTQ Solidarity Fund and Fondaction

As of September 30, Lion owed $85.9 million to IQ, the Quebec Workers’ Solidarity Fund and Fondaction.

Suppliers and landlords

In total, Lion owed approximately $57.9 million to suppliers and other creditors at this time. As for its rental obligations, it had accumulated a debt of $95.4 million.

Electric Lion

Last year, Lion delivered 771 school buses and 81 trucks. As of September 30, 2024, the manufacturer had delivered 350 school buses and 36 trucks.

Photo taken from court documents

Electric Lion

Photo taken from court documents

Three disputes

November 2023

A complaint from Delaware alleges that Lion executives breached their obligations when the manufacturer integrated Northern Genesis to go public.

Mars 2024

A second complaint is filed in New York, alleging “false statements in the proxy statement filed regarding the business combination.”

In both cases, “the defendants, which include Lion, Northern Genesis [uniquement dans la plainte de New York]Marc Bédard and Nicolas Brunet, consider that the claims raised in these complaints are unfounded and have filed motions to dismiss.

December 2024

A third complaint is filed by a group of Californian employees for unpaid wages. The defendants (Lion USA and others) are considering their claims.

Electric Lion