Battery recycler Li-Cycle announced Thursday that it was seeking buyers for its business and assets — hoping to strike a deal and avoid filing for bankruptcy protection.
The Canadian company was building a massive hub facility at Eastman Business Park but abruptly halted construction in the fall of 2023, citing escalating construction costs. Since then, there's been uncertainty about whether the once-heralded development would restart and deliver on the promise to create more than 250 jobs.
“Considering the company’s current circumstances, Li-Cycle will need to significantly modify or terminate its operations and may need to dissolve and liquidate its assets under applicable insolvency laws or otherwise file for insolvency protection,” read a statement the company released Thursday morning.
The company recycles lithium-ion batteries using a patented spoke-and-hub system, breaking down and processing the material for reuse by battery manufacturers, including for electric vehicles.
Late Thursday afternoon, the company announced that co-founder Ajay Kochhar has stepped down from from the board of directors and would, effective May 15, would no longer serve as president and CEO. Kochhar will stay on in a senior advisory role "to support its sales process." The company's chief financial officer also has resigned.
The board has appointed William Aziz as chief restructuring officer, and named an interim CFO.
Li-Cycle had hoped to secure a $475 million U.S. Department of Energy loan, but it never came through. And no deal could be struck with business partner Glencore that was “in the best interests of the company and its stakeholders,” the statement reads.
The company was delisted from the New York Stock Exchange in February.
Li-Cycle is retaining a financial services company, Hilco Corporate Finance, to market the business "as a whole or any part.”
“No assurances can be made as to whether any such buyers will be found, or as to the terms of any resulting transactions,” the statement reads.
