Aleon Secures $188 Million in Financing from Bondholders and Reaches Agreement to Sell Business
Files Voluntary Chapter 11 Petitions to Restructure Balance Sheet and Complete the Sale Process
FREEPORT, Texas , Aug. 17, 2025 /PRNewswire/ — Aleon Metals, together with subsidiaries Gladieux Metals Recycling (GMR) and Aleon Renewable Metals (ARM) (collectively, “Aleon” or the “Company”), is a global leader in the recycling and production of critical minerals. Today, the Company announced decisive steps to strengthen its role as a sustainable, U.S.-based supplier.
Backed by strong stakeholder support, the Company has secured $188 million in debtor-in-possession (DIP) financing and has filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas. The Company will use Chapter 11 to facilitate the restructuring and complete the sale process.
The new financing will provide Aleon with the liquidity to maintain normal operations, reinvest in its Freeport, Texas facilities, and continue its mission of delivering responsibly sourced, high-purity critical minerals essential to U.S. industries, national security, and clean energy.
As part of the restructuring, Aleon has entered into an agreement to sell the business in a “free-and-clear” sale under Section 363 of the Bankruptcy Code. A consortium of the DIP lenders will serve as the Stalking Horse bidder, underscoring their confidence in the Company’s future. 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.
Key Highlights
- $188 Million Financing — Stakeholder-backed DIP financing provides liquidity and investment capital.
- Business Continuity — Operations will continue uninterrupted, with employees receiving full wages and benefits.
- Growth Path — The Freeport, Texas facilities will receive renewed investment to expand production capacity and strengthen U.S. supply chains.
- Competitive Process — Sale under Section 363 ensures a transparent process, supported by a Stalking Horse bidder and open to higher or better offers.
“This is a pivotal step in Aleon’s journey,” said Roy Gallagher, Chief Restructuring Officer. “With fresh capital, strong stakeholder support, and a competitive process underway, Aleon is positioned to enhance its Freeport operations and continue providing critical minerals that are essential to America’s future.”
“We’ve worked diligently to streamline our operations and position Aleon for continued growth,” said Tarun Bhatt, Chief Executive Officer. “I want to thank our employees for their dedication and our bondholders for their steadfast support. Now more than ever, offering a sustainable, domestic alternative to foreign-sourced critical minerals is essential. This process enables us to invest further in GMR and ARM, accelerate innovation, and secure Aleon’s role as a long-term leader in U.S. critical mineral supply, while continuing to support local jobs, play a positive role in the community, and advance environmental sustainability for future generations.”
The Company has filed customary “first day” motions seeking court approval to continue operations without disruption. These include requests to pay employee wages and benefits in full. The Company anticipates swift approval and intends to operate in the normal course throughout the restructuring.
Court filings and additional information related to the proceedings are available on a website administered by the Company’s claims agent, Stretto, at https://cases.stretto.com/aleonmetals, by calling toll free at (833) 442-3180, or by emailing [email protected].
Advisors
Morrison & Foerster is serving as legal counsel, Jefferies as investment banker, Ankura Consulting Group LLC as restructuring advisor (with Mr. Gallagher, Senior Managing Director at Ankura, serving as the Company’s Chief Restructuring Officer), and Norton Rose Fulbright as Texas restructuring counsel.
About
Aleon Metals is a global leader in critical mineral recovery and renewable energy innovation.
- Gladieux Metals Recycling is the nation’s top recycler of vanadium- and molybdenum-rich spent petroleum catalysts, producing high-purity oxides that power U.S. industries.
- Aleon Renewable Metals is developing a state-of-the-art lithium-ion battery recycling complex in Freeport, Texas, to produce battery-grade materials for the U.S. clean energy and EV markets.
Together, GMR and ARM are advancing America’s energy independence and building a more sustainable future.
Media Contact:
Greg Lewis: [email protected]
SOURCE Aleon Metals
