12:48 PM EST, 11/29/2024 (MT Newswires) -- Lion Electric ( LEV ) is racing to secure investors by Saturday to meet creditor obligations, Bloomberg reported Friday, citing Quebec's Economy Minister Christine Frechette.

The Canadian electric truck and bus maker previously extended its credit agreement with three lenders and received temporary loan relief from Caisse de Depot et Placement du Quebec and Finalta Capital, the report said.

However, Frechette said Lion has yet to secure new funding, increasing the likelihood of creditor protection.

Quebec has invested CA$192 million ($137.1 million) in Lion and is open to further support if private investors participate, Bloomberg said.

The company faced a series of challenges, including supply chain disruptions, urgent financing needs, scaling difficulties, and a battery supplier dispute, particularly after going public via a merger with a special purpose acquisition company in 2021, the report added.

Shares of Lion Electric ( LEV ) fell more than 9% in recent trading.

Lion Electric ( LEV ) and the ministry did not immediately respond to MT Newswires' requests for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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