Bankruptcy: Li-Cycle Holdings Corp.

Form Type: 8-K

Filing Date: 2025-05-19

Corporate Action: Bankruptcy

Type: New

Accession Number: 000119312525122542

Filing Summary: On May 14, 2025, Li-Cycle Holdings Corp. and its North American subsidiaries initiated a voluntary restructuring under the Companies’ Creditors Arrangement Act (CCAA) in Ontario, granted an initial stay of proceedings until May 22, 2025. The restructuring includes a court-supervised sale and investment solicitation process (SISP) to attract buyers for its business or assets. Li-Cycle's U.S. subsidiaries have filed for Chapter 15 recognition in the U.S. Bankruptcy Court to protect their interests during the CCAA Proceedings. The restructuring process includes Debtor-in-Possession Financing with Glencore International AG, offering up to $10.5 million. A Stalking Horse Agreement has been established for Glencore to purchase various Company assets and subsidiaries for at least $40 million, contingent upon court approvals. The company has also initiated a wind-down of some European subsidiaries and is operating under the oversight of a court-appointed monitor during this process. The trading symbol changed to 'LICYQ' on the OTC Pink Markets effective May 15, 2025, following the bankruptcy filings. The implications for ongoing operations and future financing are highlighted, with notable risk factors detailed regarding the restructuring process.

Form Type: 8-K

Filing Date: 2025-05-12

Corporate Action: Liquidation

Type: Update

Accession Number: 000119312525117285

Filing Summary: On May 12, 2025, Li-Cycle Holdings Corp. announced extensions of waivers from its Convertible Note Holders, Glencore Canada Corporation and Wood River Capital, LLC. However, the company is facing significant operational challenges and may need to modify or terminate its operations, potentially leading to the dissolution and liquidation of its assets under insolvency laws. The company has engaged Alvarez & Marsal Corporate Finance to assist in seeking buyers for its business or assets, although there are no assurances regarding potential buyers or transaction terms. The announcement was made through a press release, attached as Exhibit 99.1, to this Form 8-K.

Form Type: 8-K

Filing Date: 2025-05-02

Corporate Action: Liquidation

Type: Update

Accession Number: 000119312525111697

Filing Summary: Li-Cycle Holdings Corp. has filed a Current Report on Form 8-K concerning its ongoing financial distress and upcoming operational changes. The company announced an agreement with Glencore and Wood River to extend waivers related to its convertible notes, crucial for maintaining eligibility on the OTC US Market until May 5, 2025. Despite previous evaluations of financial alternatives and interest from Glencore for potential transactions, Li-Cycle has not yet found a viable solution to safeguard its operations or interests, leading to the need for significant operational changes or potential dissolution and liquidation. The company suspended operations at its Arizona and Alabama recycling facilities and has furloughed approximately 85 employees, with an anticipated total reduction of 119 positions, costing around $264,000 in severance charges. Leadership changes include the resignation of long-serving CEO Ajay Kochhar and the appointment of William Aziz as Chief Restructuring Officer. The company engaged Hilco Corporate Finance to assist in seeking buyers for its business or assets, signaling a serious intent to address its financial situation amidst a possible insolvency. The filing includes detailed agreements with the outgoing CEO and other strategic advisors to facilitate these transitions and potential restructurings.