Filing Alert: Ascend Elements Chapter 11

Ascend Elements, Inc. and its debtor affiliate⁽¹⁾, a Westborough, MA-based closed-loop lithium-ion battery recycling and critical minerals refining company, filed for Chapter 11 protection on Apr. 9 in the U.S. Bankruptcy Court for the Southern District of Texas.

The debtors attribute the filing to a severe liquidity crisis precipitated by unmitigated cost overruns, construction delays, and contentious disputes with the primary contractor at their flagship Apex 1 facility, which is currently stalled at 60% completion. Across both the Kentucky and Georgia facilities, contractors, subcontractors, and suppliers have asserted over $145 million in statutory liens, the vast majority stemming from the Apex 1 project. These project setbacks were compounded by utility bottlenecks delaying commercial ramp-up at the company's Georgia facility, the cancellation of the unfunded portion of a $311 million DOE grant, and persistent downward pricing pressures in the global battery materials market driven by low-cost Chinese exports. Despite securing a $20 million senior secured convertible note bridge financing in December 2025, an out-of-court restructuring proved unworkable given the magnitude of legacy payables and immediate new money requirements.

Entering Chapter 11 without a Restructuring Support Agreement (RSA) or committed DIP facility, the debtors are pursuing a Section 363 sale of substantially all assets after prepetition negotiations for a stalking horse APA and DIP term sheet with a third-party lender failed to materialize. Concurrently with the petition, the company filed a bid procedures motion to formalize a comprehensive marketing process and designate a stalking horse bidder, led by Jefferies as proposed investment banker. First-day relief is narrowly tailored to preserve asset value, stabilize the enterprise, and maintain safety and regulatory compliance — notably without seeking authority to expand operations or restart construction at Apex 1, which the debtors have already winterized prepetition to conserve liquidity. The debtors are actively soliciting DIP financing to fund the cases and sustain operations through the sale process.

The company reports $1 billion to $10 billion in assets and $500 million to $1 billion in liabilities. The filing indicates that there will be funds available for distribution to unsecured creditors. The case number is 26-90440.

⁽¹⁾ Ascend Elements US, LLC.

Top Unsecured Claims

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Key Parties

Counsel:

• Ryan E. Manns
  Norton Rose Fulbright US LLP
  Email: ryan.manns@nortonrosefulbright.com

Financial Advisor:

• Alvarez & Marsal North America, LLC

Investment Banker:

• Jeffries Financial Group Inc.

Signatories:

• Linh Austin – President and Chief Executive Officer

Claims Agent:

• Kurtzman Carson Consultants, LLC dba Verita Global

Equity Security Holders:

• JC Bluegrass (Invest) SCSP – 10.5% Equity Interest
• Project Arise – Decarbonization Partners I SPV B, LP – 9.4% Equity Interest
• Dahlia Investments Pte. Ltd. – 8.8% Equity Interest
• Ascending Green Energy Limited – 5.9% Equity Interest
• Eagle Blue Energy Ltd. – 5.2% Equity Interest
• All Other Common Stock Equity Holders – 60.1% Equity Interest