The Lion Electric Company, a Montréal-based manufacturer of all-electric medium- and heavy-duty urban vehicles, restructured through proceedings under the Companies’ Creditors Arrangement Act (CCAA), with recognition sought in the United States under Chapter 15 of the U.S. Bankruptcy Code. Borden Ladner Gervais LLP (BLG) represented major unsecured creditors in the matter, which involved approximately C$200 million and complex cross-border Chapter 15 recognition and public-market implications.
The Company and its subsidiaries obtained CCAA protection from the Superior Court of Québec (Commercial Division) on December 18, 2024, with Deloitte Restructuring Inc. appointed as Monitor. The Court approved a sale and investment solicitation process (SISP) and debtor-in-possession financing to fund operations during the restructuring, and the CCAA proceedings were recognized in the United States under Chapter 15.
Following the SISP, the Company entered into a subscription agreement with a purchaser formed on behalf of a consortium of Québec-based investors, with the transaction implemented by way of a reverse vesting order (RVO). The RVO structure preserved the going-concern business while addressing the Company’s insolvency, and, as a publicly listed issuer, the restructuring carried significant securities-law and public-market implications. Related proceedings, including a re-rectified approval and reverse vesting order, continued before the Court, with a judgment on the RVO application rendered on November 17, 2025.
Borden Ladner Gervais LLP (BLG) acted as counsel to major unsecured creditors in the matter.