EV Powersports Company Taiga Motors Declares Bankruptcy, Starts Restructuring

Not waving, but drowning.

By: Janaki Jitchotvisut

Jul 12, 2024 at 8:48am ET

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Remember Taiga Motors? Back in April 2024, I told you that the Canadian EV watercraft and snowmobile maker had just laid off 70 workers and filed its 2023 Q4 and full-year financial results with one strange notation: No forward-looking guidance whatsoever.

While many factors have surely gone into the travails of the company so far, the big one Taiga is blaming things on is climate change. It's no wonder since both Canadian and US meteorological organizations chalked the 2023-2024 winter as being the warmest on record so far. And while Taiga also sells watercraft, those alone haven't been enough to keep the company afloat.

Pun intended.

That's why, as of this month, Taiga Motors officially obtained an interim court order for creditor protection in Canada. In addition, it has received authorization from the Quebec Superior Court to solicit investments and/or work toward a potential sale of the company under the terms of its protection order.

Canadian business site Baystreet notes that Taiga Motor's stock has nosedived since first going public in 2021, and is currently listed at $0.30 a share.

The news in April had a distinct air of doom about it, but since this is RideApart and not BusinessApart, we tried to heed lane departure warnings and keep our eyes on the next turn.

It's not yet clear what will happen next, but the beleaguered company says that Deloitte Restructuring, Inc. will monitor its restructuring efforts under Canada's Companies' Creditors Arrangement Act, more commonly referred to as the CCAA.

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Under the terms of the CCAA, the company must file a Plan of Arrangement with its creditors to illustrate how it plans to handle its outstanding debts. The Monitor's job is to keep an eye on and facilitate this process to keep things running smoothly and ensure that appropriate deadlines are met for filings, among other things.

Will Taiga be able to successfully restructure, or will it be sold to another entity? It's too early to tell, but we'll be sure to keep you posted with any new information as it comes to light.