Bankrupt Electric Bus Maker Lion Rescued by Quebec Investors

A Quebec judge will approve a transaction aimed at saving Lion Electric Co. from bankruptcy, but shareholders and most creditors will not receive any proceeds.

An investor group that includes Montreal real estate tycoon Vincent Chiara will take over the Saint-Jerome, Quebec-based company using a complex legal process called a reverse vesting order. The order keeps keep Lion’s certifications intact while eliminating liabilities and unwanted assets.

“This is the only potential transaction that makes sense. There are no others,” Quebec Superior Court Judge Michel Pinsonnault said Thursday.

“Even if the offer is meager, it has at least the merit ...