When iM3NY LLC filed for chapter 11 protection on January 27, 2025, the filing ended a clean energy manufacturing project that had promised to bring jobs to the Southern Tier of New York. The Endicott-based lithium-ion battery startup—founded at the Huron Campus, the "birthplace of IBM"—had secured over $100 million in debt financing and more than $70 million from investors. By January 2025, the company had "exhausted" all current funds, accumulated approximately $136 million in debt and a net operating loss exceeding $142 million, and was left with 22 employees compared with the 2,500 jobs once promised to the region.
The timeline from petition to dismissal was 150 days. Musashi Auto Parts Michigan, Inc., a global automotive supplier founded in 1938, acquired substantially all assets for $10 million on April 4, 2025—a purchase price that did not satisfy the prepetition secured debt owed to HSBC Bank PLC. With no assets available for unsecured creditors and conversion to chapter 7 deemed an unnecessary administrative expense, the Delaware bankruptcy court dismissed the case on June 26, 2025. The filing followed Governor Andrew Cuomo's announcement of a $140 million facility expected to create hundreds of jobs, and unsecured creditors received no recovery.
$4.1M new money + $15M roll-up; lender: HSBC Bank PLC
Buyer
Musashi Auto Parts Michigan, Inc.
Sale Price
$10 million
Sale Closing
April 4, 2025
Case Snapshot
Gigafactory Origins and Magnis-C4V Ownership
Founding at the birthplace of IBM. In 2017, Shailesh Upreti, chief executive of C4V—a Binghamton, NY-based research and development company with patented battery technologies—formed the Imperium3 consortium alongside several partner firms. The consortium announced a $130 million investment to create a lithium-ion battery gigafactory at the Huron Campus in Endicott, NY—the historic site where IBM once operated. The Endicott plant was intended to be the first of three Imperium3 gigafactories built worldwide, positioning iM3NY to become the first commercial U.S. "giga-scale" lithium-ion battery manufacturing company.
Ownership structure and Australian connection. Magnis Energy Technologies Limited, an Australian public company listed on the ASX, was the majority stakeholder in iM3NY. According to SEC filings and company disclosures, Magnis held approximately 62.0% of iM3NY's common units and 73.0% of its Class A preferred units. C4V (Charge CCCV LLC) held approximately 31.0% of common units and 26.7% of Class A preferred units, and iM3NY LLC held a 95.5% interest in co-debtor Imperium3 New York, Inc. Under this structure, Magnis was responsible for securing a significant share of the financing needed to bring the gigafactory to commercial scale.
As an ASX-listed company, Magnis was subject to Australian securities disclosure requirements, while iM3NY operated in New York under U.S. regulations. Australian regulators later challenged Magnis's public statements about the U.S. facility's progress and capabilities.
Political backing and job promises. In October 2017, then-Governor Andrew Cuomo announced that the $140 million facility would create more than 230 jobs, with broader expectations that iM3NY would eventually bring 2,500 jobs to the Southern Tier region. Shailesh Upreti initially anticipated that batteries would be manufactured by the end of 2019.
In September 2022, Governor Kathy Hochul announced nearly $114 million in federal and state funding to establish Battery-NY at the Huron campus, led by 2019 Nobel Prize winner M. Stanley Whittingham. These investments supported the New Energy New York (NENY) initiative, with iM3NY positioned as a cornerstone of the regional clean energy ecosystem and direct ties to Binghamton University.
Public funding. iM3NY received over $500,000 in state funding for 2021 and 2022. Empire State Development confirmed that the company was eligible for up to $3.5 million through the Excelsior Jobs Tax Credit Program, from which it drew two disbursements. The company was also eligible for up to $4 million through the Upstate Revitalization Initiative, though it had not claimed or been awarded any portion of that grant before its bankruptcy.
Production Shortfalls and the ASIC Disclosure Suit
Production troubles and regulatory action. Magnis Energy Technologies issued multiple ASX announcements between April 2021 and March 2023 claiming the plant was fully funded to generate at least 1 GWh of battery capacity per year. The Australian Securities and Investments Commission (ASIC) alleges that by January 2023, Magnis and executive chairman Frank Poullas knew these claims were inaccurate.
According to ASIC's civil penalty proceedings, filed in April 2024, the plant was producing about 300 battery cells per day using primarily manual processes, and Magnis failed to disclose material information about the Endicott facility's production capabilities and funding status. The ASIC lawsuit remains pending, and Magnis and Poullas have not admitted to the allegations.
Partner dispute and control loss. The relationship between Magnis and C4V deteriorated as financial pressures mounted. According to investor disclosures, the financial troubles stemmed from a dispute with Magnis over its obligation to fund the gigafactory buildout—capital needed to move from manual pilot production to automated commercial-scale manufacturing. By year-end 2024, Magnis had lost control of Imperium3 New York, and the entity reported a net operating loss of $142.6 million.
The company had raised more than $70 million from investors and more than $100 million in debt. CEO Lukasz Cianciara stated in the First Day Declaration that the company "exhausted" all of its current funds after failing to secure new investment for the battery production plant.
Workforce layoffs and shutdown. Governor Cuomo's 2017 announcement had projected 230 initial jobs with expectations of 2,500 total positions. By mid-2023, only approximately 90 jobs had been created. In October 2024, iM3NY shut down its gigafactory and laid off its entire workforce during a staff meeting, with approximately 50 workers let go at that time. By the January 2025 bankruptcy filing, 22 employees remained to oversee the wind-down. The iM3NY sign was removed from the Endicott facility in 2025.
Chapter 11 Filing and the Musashi Sale
Bankruptcy filing and HSBC capital structure. iM3NY LLC and its co-debtor Imperium3 New York, Inc. filed voluntary chapter 11 petitions on January 27, 2025, in the U.S. Bankruptcy Court for the District of Delaware, jointly administered under case number 25-10132. CEO Lukasz Cianciara's First Day Declaration reported approximately $125.8 million of aggregate principal owed to HSBC Bank PLC under the senior secured financing structure, including emergency bridge funding and accrued interest, plus about $10 million of unsecured trade debt. The debtors were pre-revenue and entered chapter 11 after defaulting under their senior secured credit documents with HSBC and entering into a December 18, 2024 forbearance agreement.
HSBC DIP financing. HSBC, the prepetition secured lender, also provided debtor-in-possession financing consisting of a $17.5 million package: $2.5 million of new-money commitments and a $15.0 million roll-up of prepetition secured debt. The Delaware bankruptcy court approved an interim DIP order on January 29, 2025, two days after the petition. The Final DIP Order, entered February 28, 2025, expanded the new-money piece to $4.1 million while keeping the $15.0 million roll-up and hardwired sale milestones, including a March 24, 2025 binding-agreement deadline, a March 26, 2025 auction date, and an April 1, 2025 sale-order deadline.
Sale process and Musashi bid. The debtors filed a Sale Motion on February 3, 2025, retaining Hilco Corporate Finance, LLC as investment banker, Novo Advisors, LLC as financial advisor, and Chipman Brown Cicero & Cole, LLP as counsel. The court entered the Bidding Procedures Order on February 26, 2025, deeming HSBC a qualifying bidder and consultation party alongside the unsecured creditors' committee, and approved key employee incentive and retention programs during the sale process.
The debtors filed an asset purchase agreement with Musashi Auto Parts Michigan, Inc. on March 31, 2025, and the court entered the Sale Order on April 3, 2025 approving the sale of substantially all assets for $10 million and finding Musashi a good-faith purchaser under section 363(m). The sale included one executory contract and one unexpired lease and closed on April 4, 2025. Musashi is a global automotive supplier founded in 1938 with operations in 14 countries and 34 locations. The $10 million purchase price did not fully satisfy the prepetition secured debt owed to HSBC, leaving nothing for unsecured creditors.
UCC Conversion Motion and Settlement
The U.S. Trustee appointed the Official Committee of Unsecured Creditors on February 12, 2025. The committee retained Seward & Kissel LLP as lead counsel, Potter Anderson & Corroon LLP as Delaware counsel, and Genesis Credit Partners LLC as financial advisor.
On February 19, 2025, the committee filed an omnibus objection to the DIP and bidding procedures, arguing the structure would leave the estates administratively insolvent. It cited a projected $343,000 shortfall by the March 14 bid deadline and a projected $2.2 million shortfall by the end of the DIP budget period, and warned that employee wages and benefits due around the bid deadline could go unpaid.
On February 21, 2025, the committee filed a Motion to Convert the cases to chapter 7 liquidation, less than a month after the petition. The parties ultimately reached a settlement that avoided a contested fight over conversion. The settlement was reached before the case dismissal, and its terms were not publicly detailed.
Case Dismissal and Wind-Down
Reasons for dismissal. Following the April 4, 2025 sale closing, the debtors filed a Motion to Dismiss on April 22, 2025, stating that dismissal would be the most efficient way to conclude the proceedings. The motion cited several factors supporting dismissal over conversion to chapter 7:
Sale proceeds insufficient: The sale of substantially all assets fell short of anticipated prices and did not fully satisfy the prepetition secured debt owed to HSBC Bank PLC
No operating business: After the sale closing, the debtors were no longer operating their business
No plan funding: The debtors lacked sufficient funding to propose a plan of liquidation
No unsecured creditor recovery: No assets of any value were available for distribution to unsecured creditors
All cash encumbered: All remaining cash constituted "cash collateral" with no unencumbered assets of material value
Chapter 7 costs outweigh benefits: Conversion would impose additional administrative costs with no corresponding benefit to creditors
Dismissal order provisions. The bankruptcy court entered the Dismissal Order on June 26, 2025, 150 days after the petition. The order provided exculpation for the debtors; directors, officers, and employees who served during the cases; the debtors' professionals; the Official Committee of Unsecured Creditors and its professionals; and HSBC Bank PLC in its capacity as DIP Lender. The exculpation expressly excludes liability for gross negligence or willful misconduct.
The order also authorized the debtors to wind down under applicable state law rather than under continued bankruptcy court supervision, terminated Stretto, Inc.'s engagement as administrative advisor, and approved Sun Environmental Corporation to handle waste removal from the facility.
Residual asset liquidation. After the going-concern sale to Musashi, the debtors retained Heritage Global Partners, Inc. as auctioneer for the remaining assets under a retention order entered May 9, 2025. The auction results report was filed July 21, 2025, concluding the liquidation of residual property not included in the Musashi transaction.
Creditor Recovery and Contract Dispositions
The bankruptcy produced no recovery for unsecured creditors:
Creditor Class
Treatment
DIP Lender (HSBC Bank PLC)
Secured claims not fully satisfied; retains liens on remaining assets post-dismissal
Prepetition Secured Lenders
Continue to have superior claim on all assets post-dismissal
Unsecured Creditors
No assets available for distribution; zero recovery
Administrative Claimants
Professional fees paid from sale proceeds where available
The $10 million sale price was below the company's total debt of approximately $136 million. After satisfying DIP obligations and administrative expenses, the prepetition secured debt owed to HSBC remained unsatisfied. With all remaining cash encumbered as cash collateral and no unencumbered assets of material value, unsecured creditors received nothing.
Contract disputes.Phoenix Endicott Industrial Investors, LLC and Charge CCCV, LLC filed cure-amount objections during the sale process, and UKG Inc. filed an objection; each was resolved through the sale process. Post-sale, the debtors filed an omnibus rejection motion on May 8, 2025, and the court entered a lease rejection order on May 29, 2025, addressing the remaining executory contracts and unexpired leases.
Professional retentions. The debtors retained Chipman Brown Cicero & Cole, LLP as counsel, Novo Advisors, LLC as financial advisor, Hilco Corporate Finance, LLC as investment banker, and Stretto, Inc. as administrative advisor and claims agent. All retained professionals filed final fee applications in May 2025, with fees paid from available sale proceeds before the case dismissal.
Key Timeline
Date
Event
October 2017
Governor Cuomo announces $140M facility expected to create 230+ jobs
2017
Shailesh Upreti founds iM3NY with $130M consortium investment
2019
Original target for battery manufacturing (missed)
June 2021
First full-sized prismatic cells produced
September 2022
Governor Hochul announces $114M for Battery-NY initiative
January 2023
Plant producing about 300 cells/day using manual processes
Mid-2023
About 90 jobs created (far short of 2,500 promised)
April 2024
ASIC sues Magnis and Frank Poullas for disclosure failures
Late 2024
Magnis loses control of Imperium3 New York
October 2024
iM3NY shuts down gigafactory; lays off about 50 workers
January 27, 2025
Chapter 11 petition filed
January 29, 2025
Interim DIP order entered
February 3, 2025
Sale motion filed
February 12, 2025
Official committee of unsecured creditors appointed
February 19, 2025
Committee files omnibus objection to DIP and bidding procedures
February 21, 2025
Committee files motion to convert to chapter 7
February 26, 2025
Bidding procedures order entered
February 28, 2025
Final DIP order entered
March 31, 2025
APA with Musashi filed
April 3, 2025
Sale order entered ($10M to Musashi)
April 4, 2025
Sale closing completed
April 22, 2025
Motion to dismiss filed
Frequently Asked Questions
What was iM3NY?
iM3NY (Imperium3 New York) was a lithium-ion battery manufacturing company based in Endicott, NY, at the Huron Campus—the "birthplace of IBM." The company aimed to be the first commercial U.S. giga-scale battery manufacturing facility, producing cobalt-free batteries using C4V's patented Bio Mineralization technology.
Why did iM3NY file for bankruptcy?
The company "exhausted" all current funds after raising more than $70 million from investors and more than $100 million in debt. It defaulted under its senior secured credit documents with HSBC and entered a December 18, 2024 forbearance before filing. By January 2023, the plant was producing about 300 cells per day using manual processes, and the company could not secure additional financing.
Who bought iM3NY's assets?
Musashi Auto Parts Michigan, Inc., a global automotive supplier founded in 1938 with operations in 14 countries and 34 locations. The purchase price was $10 million.
Did the sale satisfy iM3NY's debts?
No. The $10 million sale did not fully satisfy the prepetition secured debt owed to HSBC Bank PLC, which held approximately $125.8 million in secured principal. Unsecured creditors received nothing.
Why was the case dismissed rather than converted to chapter 7?
The debtors argued dismissal was more cost-effective. Conversion to chapter 7 would impose additional administrative costs with no corresponding benefit since no assets were available for unsecured creditors. The committee's motion to convert was resolved through settlement, allowing dismissal to proceed.
What happened to the promised jobs?
Governor Cuomo announced in 2017 that the facility would create 230 initial jobs, with expectations of 2,500 total positions for the region. By mid-2023, only about 90 jobs had been created. At the bankruptcy filing, 22 employees remained.
Did iM3NY receive public funding?
Yes. The company received over $500,000 in state funding and tax credits, was eligible for up to $3.5 million through the Excelsior Jobs Tax Credit Program (from which it drew two disbursements), and up to $4 million through the Upstate Revitalization Initiative (never claimed).
What was the ASIC lawsuit about?
In April 2024, the Australian Securities and Investments Commission filed civil penalty proceedings against Magnis Energy Technologies and executive chairman Frank Poullas for allegedly failing to disclose material information about the Endicott facility's production problems. ASIC alleges that by January 2023, Magnis knew its public statements about the plant being fully funded for 1 GWh annual production were inaccurate. The case remains pending.
How long did the chapter 11 case last?
150 days, from the petition on January 27, 2025 to dismissal on June 26, 2025. The sale closed on April 4, 2025.
Who is the claims agent for iM3NY?
Stretto, Inc. serves as the administrative advisor and claims agent. The firm maintains the official claims register and distributes case notifications to creditors and parties in interest.
omnibus rejection motion /documents/9b5c3db6-010d-4d07-ba44-80f5808e0ff6/
lease rejection order /documents/4659439e-2083-4c9b-9da2-66f5463a52af/
retained Chipman Brown Cicero & Cole, LLP /documents/20aaba7f-7f0b-4a4b-b5cb-114d7898f76f/
$100 million in debt financing https://www.bloomberg.com/news/articles/2025-01-27/new-york-based-battery-maker-im3ny-out-of-cash-files-bankruptcy
promised to the region https://www.binghamtonhomepage.com/news/top-stories/im3ny-gigafactory-shuts-down-in-endicott/
acquired substantially all assets for $10 million https://www.tipranks.com/news/company-announcements/magnis-energy-technologies-announces-sale-of-im3ny-assets
several partner firms https://www.binghamton.edu/news/story/796/binghamton-university-start-up-moves-to-huron-campus
first commercial U.S. "giga-scale" https://www.tipranks.com/news/company-announcements/magnis-energy-technologies-subsidiaries-file-for-chapter-11-protection
exclusive North American technology license https://www.benzinga.com/pressreleases/21/04/b20694846/im3nys-new-york-lithium-ion-gigafactory-receives-significant-funding
produced its first full-sized prismatic cells https://www.greencarcongress.com/2021/06/20210618-im3ny.html
62.0% of iM3NY's common units https://www.marketscreener.com/quote/stock/MAGNIS-ENERGY-TECHNOLOGIE-18074405/news/Magnis-Energy-Technologies-US-Units-File-for-Chapter-11-Bankruptcy-48885507/
nearly $114 million in federal and state funding https://www.governor.ny.gov/news/governor-hochul-announces-nearly-114-million-federal-and-state-funding-create-first-class
$3.5 million through the Excelsior Jobs Tax Credit Program https://www.wskg.org/regional-news/2024-10-21/endicott-battery-company-im3ny-which-received-over-500-000-in-state-funding-lays-off-staff
January 2023, Magnis and executive chairman Frank Poullas knew these claims were inaccurate https://www.asic.gov.au/about-asic/news-centre/find-a-media-release/2024-releases/24-087mr-asic-sues-magnis-and-frank-poullas-over-disclosure-failures/
dispute with Magnis https://www.proactiveinvestors.com/companies/news/1035311/magnis-energy-technologies-loses-control-of-imperium3-new-york-1035311.html
iM3NY sign was removed https://wnbf.com/endicott-failed-gigafactory-im3ny-sign-removed/
reached a settlement https://www.law360.com/bankruptcy-authority/articles/2301883/battery-startup-im3ny-strikes-deal-with-creditors-in-ch-11
This article was researched and written with AI assistance, using court filings, public records, and news sources. AI-generated content can contain errors. Verify all information against primary sources before relying on it. This is not legal or financial advice. See the disclaimer.