Glencore Canada has completed its purchase of certain subsidiaries and assets of Li-Cycle Holdings, concluding the EV-battery recycler’s court-approved sale and investment-solicitation process (SISP.)

The transaction includes Li-Cycle’s spokes in Ontario, Arizona, Alabama, New York, and Germany, its hub project in Rochester, N.Y., and its intellectual-property portfolio. The sale was carried out through a credit bid and assumption of certain debt under an equity and asset-purchase agreement signed in May, and received approvals from courts in Ontario and New York.

The deal completion came after Li-Cycle reached a stalking-horse purchase agreement with Glencore, valued at a minimum of $40 million. Li-Cycle also9 secured a debtor-in-possession (DIP) financing term sheet with Glencore, its largest secured creditor, for up to $10.5 million. These funds helped maintain Li-Cycle’s operations, particularly at its Germany Spoke, and finance the restructuring.

Glencore Canada also disclosed that it holds US$327.4 million in unsecured convertible notes of Li-Cycle, which if converted would give it a 62.6% stake in the company on a partially diluted basis. The company is a wholly owned indirect subsidiary of Glencore plc, one of the world’s largest diversified natural- resource producers and commodities traders.

Toronto-based Alvarez & Marsal served as the Ontario court’s monitor as Li-Cycle proceeded through creditor protection under the Canadian Companies’ Arrangement Act. According to a previous Alvarez & Marsal court filing, Li-Cycle had US$205.6 million in outstanding secured debt.

Pictured: Paused Li-Cycle hub development project in Rochester, N.Y.

Photo: Pike Conductor