Li-Cycle Holdings Inc.'s successful cross-border restructuring under the CCAA and Chapter 15 of the U.S. Bankruptcy Code
On August 7, 2025, we assisted Li-Cycle Holdings Inc. and related Li-Cycle entities (“Li-Cycle”), a public global battery recycling business, with its successful cross-border restructuring under the Companies’ Creditor Arrangement Act ("CCAA") and Chapter 15 of the U.S. Bankruptcy Code.
Li-Cycle’s business focused on lithium-ion battery resource recovery, through its patented Spoke and Hub technology. Its technology was designed to enable a “closed loop” in the electric vehicle (EV) battery value chain. At its Spokes, Li-Cycle recycled battery manufacturing scrap and end-of-life batteries to produce black mass and other properties. At its planned Hubs, Li-Cycle planned to process black mass to produce critical battery-grade materials, including lithium carbonate, which could then be used in the manufacture of batteries.
While Li-Cycle was poised to become an industry leader ready to take advantage of the growth of the EV supply chain, it encountered numerous challenges, including increased construction costs on its Rochester Hub and difficulty raising additional financing, influenced by uncertainty in respect of financing clean technology initiatives in the political climate in the United States. In this successful restructuring process, Li-Cycle completed a lengthy sales process and was acquired by the multi-national resource company Glencore (which held more than $200 million in secured debt) through a transaction approved by the Court in an Approval and Vesting Order. The business emerged as a going concern able to continue its EV battery recycling business and pursue the development of its patented Spoke & Hub technology and pursuit of a complete lithium-ion battery recycling solution.
McCarthy Tétrault assisted Li-Cycle with a team led by Heather Meredith and Fraser Bourne that included Trevor Courtis, Saneea Tanvir, Meena Alnajar (Bankruptcy and Restructuring), Rob Hansen, Brianna Bernhardt, Lama Kahiel (Business), Kabir Jamal (Tax), Lauren Grimaldi and Susan Wortzman (MT>3).
