Taiga granted creditor protection as electric snowmobile outfit pursues sale

MONTREAL — Taiga Motors Corp. says it has obtained an interim court order for creditor protection as well as one authorizing the company to launch a formal sale and investment solicitation process.

The Montreal-based electric snowmobile maker also says it has secured a line of credit from Export Development Canada — already a creditor — for up to $4.4 million.

The company says the money will be used to finance it and its subsidiaries' capital requirements for restructuring under the Companies' Creditors Arrangement Act.

The company says it expects it will be placed under delisting review on the Toronto Stock Exchange.

In April, Taiga announced it would lay off 70 employees on top of 31 cut in January, amounting to a one-third workforce reduction so far this year as the company temporarily halted vehicle production after reporting a net loss $72.5 million for 2023.

It says Deloitte Restructuring Inc. has been appointed as the monitor for the CCAA process.

This report by The Canadian Press was first published July 10, 2024.

Companies in this story: (TSX:TAIG)

The Canadian Press