Lithium-ion battery manufacturer iM3NY has filed for Chapter 11 bankruptcy protection in Delaware, citing approximately $136 million in debt and challenges in securing new funding for its New York production plant.
Financial Struggles
In a first-day declaration filed late Monday, CEO Lukasz Cianciara detailed iM3NY’s financial situation, which includes $125.8 million in secured debt and $10 million in unsecured debt. The company has also secured a $17.5 million debtor-in-possession (DIP) loan to sustain operations while it seeks a buyer during bankruptcy proceedings.
iM3NY’s bankruptcy petition estimates its assets to be between $50 million and $100 million.
Funding Woes and Operational Setbacks
Founded in 2017, iM3NY opened its lithium-ion battery production facility in Endicott, New York, in 2022. The company, which has yet to generate revenue, sought additional funding in early 2023 to implement operational changes at its factory. However, the effort failed, leading to a default on its secured debt.
