The future of bankrupt Lion Electric remains undecided following a court-appointed monitor's decision to grant a one-week extension for companies interested in buying or liquidating Lion's assets. Bids were initially due today, March 7, but that date has been pushed to March 14, according to The Canadian Press.
The Quebec-based battery-electric commercial vehicle and bus manufacturer filed for bankruptcy protection in January following a major workforce reduction at its manufacturing facility in Joliet, Illinois and its Canadian headquarters.
[Related: Lion Electric files for bankruptcy]
Last month, the bankruptcy monitor confirmed Lion had received letters of intent from potential buyers and liquidators but any final deals have yet to materialize. The company also received a creditor protection extension until April 4, 2025.
Shareholders filed a class-action suit against Lion last month, claiming it mispresented its finances to investors.
Lion built electric school buses at its Illinois facility and Class 6 and 8 commercial trucks in Quebec. To date, Lion has around 2,200 vehicles in circulation.
Ongoing EPA investigation
Also last month, the Environmental Protection Agency (EPA) opened an investigation into Lion's electric school bus, specifically those purchased by a Maine school district that have removed from service due to unresolved technical issues.
Federal agents recently visited Winthrop Public School district Superintendent Becky Foley and transportation director Josh Wheeler in an effort to better understand those bus failures.
[Related: Lion Electric EV school bus catches fire on way to school]
Lion has not yet repaired these vehicles, likely because of a lack of employees following the layoffs. This is a cause for concern following a fire incident involving one of Lion's student-packed EV buses in Ontario, Canada. No injuries were reported but the fact that the bus went up in flames shortly after the driver successfully evacuated the students remains a sore spot for Lion's inability to build a safe product and to provide effective customer support.
For now, potential asset suitors have another week to make something happen. Reports claim there is interest but the number of buyers remains unknown.
