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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.

A bridge loan obtained late last year helped iM3NY stave off Chapter 7 liquidation and allowed it to rehire 22 employees who had been laid off. Despite these challenges, Cianciara stated that iM3NY expects to begin selling its batteries in early 2025.

Legal Representation and Case Management

The bankruptcy case has been assigned to U.S. Bankruptcy Judge Brendan Linehan Shannon. iM3NY is represented by David W. Carickhoff, William E. Chipman Jr., Bryan J. Hall, Mark D. Olivere, and Alan Michael Root of Chipman Brown Cicero & Cole LLP.