Li-Cycle Holdings Inc. filed for Chapter 15 bankruptcy protection amid financial struggles, including limited cash, mounting debt, and increasing pressure from creditors.

Swiss-based Glencore submitted a stalking horse credit bid of at least US$40 million for certain Li-Cycle subsidiaries and assets, including the Rochester Hub. The bid gives Glencore the right to make the first offer, setting a minimum price for future bids. Glencore already holds US$327.4 million in Li-Cycle convertible notes.

Despite securing a US$475 million Department of Energy loan, the funds remain inaccessible before Li-Cycle must first pay off US$89.7 million in existing construction debts on the project and also ensure it has US$173 million in reserve. The company tried to attract investment to restart operations and resume construction.