Lithium-ion battery recycler Aleon Metals and two of its subsidiaries, Gladieux Metals Recycling and Aleon Renewable Metals, filed for Chapter 11 restructuring Sunday in the Southern District of Texas.
Citing $100 million to $500 million in liabilities, the Freeport-based company said in its first-day filing that it has secured $188 million in debtor-in-possession financing and has entered into an agreement to sell the company in a “free-and-clear” transaction.
“A consortium of the DIP lenders will serve as the Stalking Horse bidder, underscoring their confidence in the Company’s future,” Aleon Metals wrote in a news release issued Sunday. “Jefferies, Aleon’s investment banker, will continue to market the business as part of the ongoing, competitive auction process, which remains open to higher or better offers. This ensures Aleon secures the best possible outcome for employees, customers, stakeholders and community.”
Roy Gallagher, a senior managing director at Ankura, is serving as Aleon’s chief restructuring officer.
Aleon does not have a general counsel and no lawyers are listed among its executive leadership or board of directors.
The company chose Morrison & Forrester as its lead counsel and Norton Rose Fulbright and Houston partner Jason Boland as lead local counsel.
The case has been assigned to Houston Bankruptcy Judge Christopher Lopez.
The case no. is 4:25-bk-90305.