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Li-Cycle Holdings Initiates Restructuring Under CCAA and Chapter 15

Story Highlights
  • Li-Cycle initiated restructuring under CCAA and Chapter 15 on May 14, 2025.
  • The company secured $10.5 million financing and a $40 million asset sale agreement with Glencore.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.

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Li-Cycle Holdings ( (LICYQ) ) just unveiled an announcement.

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 Canada and Chapter 15 in the U.S., seeking creditor protection and a court-supervised sale and investment solicitation process. The company has entered into a $10.5 million debtor-in-possession financing agreement with Glencore and a ‘stalking horse’ purchase agreement for $40 million, which includes the sale of certain subsidiaries and assets. This restructuring aims to stabilize operations, maintain key projects like the Germany Spoke, and wind down non-essential subsidiaries, while transitioning its trading to the OTC Pink Markets.

The most recent analyst rating on (LICYQ) stock is a Hold with a $2.25 price target. To see the full list of analyst forecasts on Li-Cycle Holdings stock, see the LICYQ Stock Forecast page.

Spark’s Take on LICYQ Stock

According to Spark, TipRanks’ AI Analyst, LICYQ is a Neutral.

Li-Cycle Holdings’ overall score is affected by strong revenue growth but hindered by significant financial challenges, including high leverage and negative cash flows. Technical indicators suggest bearish momentum, while recent earnings calls and corporate events highlight positive strategic progress and additional funding. Overall, while there are promising developments, financial and operational hurdles need resolution to improve the stock’s outlook.

To see Spark’s full report on LICYQ stock, click here.

More about Li-Cycle Holdings

Li-Cycle Holdings Corp. is a leading global lithium-ion battery resource recovery company, established in 2016. The company focuses on recovering critical battery-grade materials to create a domestic closed-loop battery supply chain for a clean energy future.

Average Trading Volume: 449,486

Technical Sentiment Signal: Sell

Current Market Cap: $3.3M

Find detailed analytics on LICYQ stock on TipRanks’ Stock Analysis page.

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