Li-Cycle seeks buyers amid looming bankruptcy risks

Li-Cycle Holdings Corp., a leading lithium-ion battery recycler, has announced it is seeking buyers for its business or assets amid severe financial struggles that may force it into bankruptcy if a sale cannot be secured. The company has faced mounting debts, halted construction of its major Rochester hub due to escalating costs, and was delisted from the New York Stock Exchange earlier this year. Despite obtaining extensions on waivers from key convertible note holders, including Glencore and Wood River Capital, these measures only provide temporary relief and do not resolve ongoing liquidity issues. Efforts to secure a $475 million U.S. Department of Energy loan or reach a beneficial transaction with Glencore have been unsuccessful. Li-Cycle has enlisted Hilco Corporate Finance to assist in marketing the company or its assets. The outcome remains uncertain, with the potential for significant operational changes, liquidation, or insolvency protection if no buyer is found.