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According to court documents, the buyers have reached an agreement with the Quebec government to renew a recently expired subsidy program for electric school buses. On Friday, they made their new offer to buy the company, which sought protection from creditors in December. 

“This is extremely positive,” Jean-François Nadon, a restructuring specialist with Deloitte, the company’s court-appointed monitor, told a Quebec Superior Court judge on Monday. “We are going to save jobs, save a company.”

On May 5, Nadon told the court that Lion Electric would very likely be liquidated following the government’s decision not to provide any more public funds. The investors had made a previous bid to buy the company, but it was contingent on the Quebec government “agreeing to participate and invest in the operations of the Lion Group going forward,” according to the court documents. Recent news reports said the group of buyers was seeking $24 million from the province to relaunch the company. 

On April 30, Quebec Economy Minister Christine Fréchette announced it would be irresponsible to offer Lion more public money. She later told reporters she “would have expected the private sector to be more involved.”

Quebec has already invested heavily in Lion Electric, and Premier François Legault has said the province stands to lose about $140 million on the company, which manufactured electric school buses and trucks.

Speaking to reporters on Monday, Legault repeated that the government “will not invest more money in Lion.”

Following the court hearing last week, Lion Electric continued discussions with the group of investors and with other companies interested in liquidating its assets, the court documents say. On Friday, the investors reached an agreement with the Quebec government to renew a program that had expired in March and offered subsidies to help school bus operators afford the higher cost of electric buses.

That program was integral to Lion’s success in Quebec, where the government has required since 2021 that all new school buses be electric. There are currently about 1,175 Lion school buses on the road in the province. 

The investors then submitted a new offer to buy the company that doesn’t require public financing, Nadon said. He added that the deal should be finalized by Wednesday, and he hopes to present it to the court for approval during a hearing set for Friday. 

Nadon said the buyers are offering a lower price than previous bids, and conceded it’s not the “preferred result” of the company’s creditors. “But in the circumstances, the secured creditors believe that this is the offer that must be accepted, that it is an offer that avoids liquidation,” he said. 

Lion Electric has been seeking a buyer since December, with a restructuring plan that would focus only on school buses and return all manufacturing to Quebec. The company shut down production at a plant in Illinois last year after undergoing several rounds of layoffs. It has now laid off all but 12 of its employees. 

This report by The Canadian Press was first published May 12, 2025.