The logo of battery recycler Li-Cycle Holdings Corp is displayed on their offices in Phoenix, Arizona, U.S. June 30, 2022. REUTERS
The firm’s U.S. units have also commenced proceedings in the U.S. Bankruptcy Court for the Southern District of New York.
Li-Cycle has entered into a $10.5 million debtor-in-possession financing and a stalking horse credit bid for at least $40 million with London-listed Glencore (GLEN.L), its largest secured creditor.
In March, Li-Cycle said it is seeking buyers for its business or assets as it needs additional funding to maintain operations. Glencore made an offer to acquire the Toronto-based company as part of a proposal to offset operational and financial issues.
The company has filed for bankruptcy protection under Chapter 15 and the Companies’ Creditors Arrangement Act (CCCAA), a Canadian federal law that allows insolvent corporations that owe creditors in excess of $5 million to restructure their business and financial affairs.
In November last year, the U.S. Department of Energy finalized a $475 million loan for Li-Cycle, a financial lifeline for the company that kept running into cost overruns and technical issues.
Reporting by Gursimran Kaur in Bengaluru; Editing by Mrigank Dhaniwala and Sonia Cheema
