Li-Cycle Corp., the North American arm of Toronto-based Li-Cycle Group, sought protection under the Companies’ Creditors Arrangement Act (CCAA) on May 14, 2025, amid financial distress and mounting liabilities of approximately US$860.8 million (approx. C$1.17 billion). Key creditors include Glencore Ltd. and Glencore Canada Corporation, owed US$327.5 million (approx. C$445 million). The lithium-ion battery recycler has faced severe challenges since late 2023, notably substantial cost overruns at its Rochester, New York “Hub,” which triggered mechanics’ liens and class action lawsuits in both Ontario and New York.

Despite securing a US$475 million (approx. C$646 million) loan commitment from the U.S. Department of Energy, funding has stalled due to unmet conditions requiring an additional US$262.7 million (approx. C$357 million) in investment. Li-Cycle’s share price has plummeted over 99%, and its NYSE listing has been delisted. Operations at its “Spokes” and the Rochester Hub have been paused, with workforce reductions exceeding 75%, and liquidity is critically constrained.

The CCAA filing supports a broader restructuring of the global Li-Cycle Group, including its Asian and European operations. A Sale and Investment Solicitation Process (SISP) has been launched with Glencore as the stalking horse bidder and DIP lender. Alvarez & Marsal is the monitor, with William Aziz as CRO and Michelle Faysal as CFO. Legal advisors include McCarthy Tétrault and Freshfields (Li-Cycle), Osler and Skadden Arps (monitor), Torys and Weil Gotshal (Glencore), and others including Stikeman Elliott, Berger Montague, Jones Day, White & Case, and Greenberg Traurig. Chapter 15 recognition is being sought in the U.S.