Canadian battery recycling company Li-Cycle has filed for protection from creditors under the Canadian Bankruptcy and Insolvency Act. At the same time, Chapter 15 bankruptcy proceedings have been initiated in the United States. This follows ongoing financial difficulties, which prompted the company to seek buyers for its assets in March.
Continuation of operations in Germany
Glencore as the largest secured creditor is offering at least 40 million US dollars for Li-Cycleʼs key operating units and intellectual property as part of a “stalking horse” procedure. Final approval by the relevant Canadian court is still pending. According to Li-Cycle, the agreement with Glencore includes a 10.5-million-dollar bridging loan to continue operating individual business units. Li-Cycle plans to wind up several subsidiaries in Europe and Asia but to continue operations in Switzerland and Germany for the time being. Defaults on existing credit agreements occurred as a result of the insolvency proceedings, including an undrawn 475-million-dollar credit line from the US Department of Energy.
