The Lion Electric Co. has applied to the Superior Court of Quebec for protection from creditors under the Companies’ Creditors Arrangement Act.
The electric school bus maker also says it plans to seek recognition of the CCAA proceedings in the U.S. under Chapter 15 of the Bankruptcy Code.
In its application to the Quebec court for an initial order, the company is seeking approval of a formal sale and investment solicitation process.
Approval is also being sought for the appointment of Deloitte Restructuring Inc. as the monitor to oversee the process.
The filing for credit protection comes after the company said Monday that it had defaulted on its debt.
The company temporarily laid off 400 employees and shut down production at its Illinois plant earlier this month after getting a two-week reprieve from its lenders to explore its alternatives.