Quebec-based Lion Electric, which has made dozens of electric school buses for the P.E.I. government, is now in creditor protection.
The electric bus and truck manufacturer said in a statement Tuesday that it had been unable to find a way to repay debts that as of early December stood at more than $411 million.
“At this stage, Lion is not being liquidated, but is rather undertaking various restructuring measures, including a sale and investment solicitation process,” Marie-Ève Labranche, a Lion spokesperson, said in an email to CBC News.
P.E.I. began to electrify its school bus fleet in 2021, starting with 12 buses. That fleet has since grown to about 100.
The P.E.I. government and the Public Schools Branch say they are keeping a close eye on what’s going on with Lion Electric.
“While this report is concerning, the province is in discussions with Lion to ensure that P.E.I.’s electric school buses are reliable and safe, and these conversations will continue,” a provincial spokesperson told CBC News.
“If the need arises that we need to shift to diesel buses, that is something we will pursue.”
The company’s uncertain future is concerning some of P.E.I.’s unionized bus drivers, who worry it could make repairs to their vehicles more difficult. Their union told CBC News it’s too early to know what will happen, while the creditor protection process continues.
As for Lion, it will continue day-to-day operations under the supervision of a monitor, appointed as part of the Companies’ Creditors Arrangement Act, as it goes through creditor protection process.
The company has said it will still help customers with any bus maintenance issues.