A Quebec Superior Court judge has approved the sale of Lion Electric, giving the troubled electric school bus manufacturer a lifeline after months of uncertainty.

“This is the only potential transaction that makes sense,” Justice Michel Pinsonnault said while endorsing the transaction during a recent hearing, The Canadian Press reported.

“There are no others.”

The decision clears the way for a consortium of Quebec-based investors to take control of the company, which had been under creditor protection since December. Just weeks ago, Lion Electric appeared headed for liquidation after a previously announced deal fell through. But the new last-minute deal will allow it to maintain its operations and preserve its manufacturing facility in the Montreal suburb of Saint-Jérôme, Que.

The company previously operated a school bus manufacturing plants in Joliet, Ill., as well as the Quebec facility. Lion’s news release did not provide details on the future of the company’s lithium-ion battery manufacturing plant in Mirabel, Que.

The new ownership group includes Pierre Wilkie, a Lion Electric director, and Montreal real estate entrepreneur Vincent Chiara through Mach Capital, along with other prominent Quebec investors such as Luc Sabbatini, Éric D’Anjou, Claude Boivin, Martin Barbeau, Pierre Bolduc, and Michael Zakuta.

“These business leaders bring experience across sectors that include energy, mobility, pharmaceuticals, real estate, and technology,” the company said.

Under the new plan, the company—now branded simply as Lion—will shift its focus to producing electric school buses exclusively for the Quebec market. The vehicles will be assembled locally, and the company has pledged to honour all warranties and gradually resume maintenance and parts supply.

“We are proud to have mobilized a group of such experienced businessmen to relaunch Lion and to contribute to the energy transition,” said Sabbatini. “Our ambition is clear: Ensure the company’s long-term revival through a realistic business vision focused on product quality, operational efficiency, and proximity to our clients.”

In court, Lion Electric’s lawyer Guy Martel acknowledged the challenges that led to the deal, noting the company’s tumultuous restructuring process, CP reported.

“It’s not the transaction we expected to get approved when we began the process,” he told the judge. “But unfortunately, it’s the only one we’re able to present to you.”

Martel cited numerous setbacks, including a failed earlier offer from the same investor group after the Quebec government declined to provide additional financial support. Reports indicated the group had sought $24 million in public funding, but Premier François Legault said the province would not contribute further, having already invested heavily in the company. Legault has previously pegged Quebec’s potential loss at $140 million.

But the new deal went through after the province pledged to continue providing grants for purchases of Lion buses through the company, according to reports.

Quebec’ federation of bus manufacturers welcomed the deal.

“We are relieved to see that the hundreds of Lion electric buses currently on our roads will not be orphaned and that they will be entitled to the warranty and after-sales service they are due,” said Luc Lafrance, the group’s president, in a news release.

“Thanks to this transaction, carriers can look forward to the start of the [2025-2026] school year with greater peace of mind. Now, we will work with the government to ensure that this saga also stabilizes in the long term.”

Lafrance’s group is known by its French name, Fédération des transporteurs par autobus (FTA.)

According to the FTA, the province’s School Bus Electrification Program (STP) has subsidized the purchase of Lion by between $150,000 and $170,000 in recent years.

“This funding will be increased to $200,000 per bus,” the FTA said.

Financial terms of the deal were not disclosed. Lion’s new ownership group said it will make further comments later and is not granting media interviews at this time.

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Pictured: Lion electric-powered school bus.

Photo: Lion