09:39 AM EST, 12/17/2024 (MT Newswires) -- Lion Electric ( LEV ) said Tuesday it defaulted under some of its senior debt instruments and will start restructuring proceedings.

Lion said it's in talks with its lenders to get additional funds under a new debtor-in-possession credit facility.

The company said it "expects to seek creditor protection" to "restructure its business and financial affairs and pursue a formal sales and investment solicitation process in respect of the company's business or assets."

The company's shares were falling past 25% in recent trading.