Taiga Motors seeks bankruptcy protection
Originally published on Powersports Business.
By John Prusak
The ongoing struggles faced by Quebec-based Taiga Motors as it tries to become an electric snowmobile and personal watercraft pioneer hit another snag when the company filed for the equivalent of bankruptcy protection in Canada.
The June 10, 2024, filing under the Canadian Companies Creditors Arrangement Act is similar to a Chapter 11 bankruptcy filing in the U.S. That means that the company is seeking protection from creditors while continuing its operations and operating under the watchful eyes of a court-appointed trustee. In this case, that trustee is Deloitte Restructuring Inc. It is not to be confused with a Chapter 7 bankruptcy, which results in the closing of a business and liquidation of assets.
Many big companies (including Apple and General Motors, for example) have successfully emerged from a Chapter 11 filing. However, more often, a company filing for such protection will seek new investment or an outright sale. If that fails, though, a Chapter 7 may be down the road.
Taiga’s latest move follows layoffs and a production halt announced in April.
The Canada-based Financial Post posted an interesting background story on the Taiga saga on its website this afternoon. It’s worth a read for those curious about how Taiga got to this point and what may happen next.
Read the full announcement from on the Taiga’s Investor Relations website.
