Ecolomondo Corporation and four related companies remain subject to proceedings under Canada’s Companies’ Creditors Arrangement Act as court-appointed monitor KPMG continues efforts to restructure or sell the tire recycling technology business. The Quebec Superior Court initially granted CCAA protection on May 21, 2026, covering Ecolomondo Corporation, Ecolomondo Environmental (Hawkesbury) Inc., Ecolomondo Environmental (Contrecoeur) Inc., 9083-5018 Québec Inc. and Ecolomondo Advanced Carbon Technologies Inc. Since then, the court has repeatedly extended the stay of proceedings while KPMG has stabilized operations and conducted a Sale and Investment Solicitation Process. A successful bid has been selected and KPMG has been working to finalize an asset purchase agreement with a potential purchaser. The most recently published court order on KPMG’s creditor information page extended the stay through October 9, 2026, while the monitor completed negotiations. The proceedings are particularly relevant to the tire recycling sector because Ecolomondo developed its proprietary Thermal Decomposition Process for recovering tire-derived oil, recovered carbon black, steel and other materials from end-of-life tires.

CCAA protection began in May 2026

Ecolomondo sought creditor protection in May after facing financial difficulties associated with its operations and development activities. On May 21, the Commercial Division of the Quebec Superior Court granted an initial order under the Companies’ Creditors Arrangement Act and appointed KPMG Inc. as monitor.

The proceedings cover Ecolomondo Corporation and its wholly owned subsidiaries Ecolomondo Environmental (Hawkesbury), Ecolomondo Environmental (Contrecoeur), 9083-5018 Québec and Ecolomondo Advanced Carbon Technologies.

Export Development Canada is principal secured creditor

Export Development Canada is identified in the proceedings as Ecolomondo’s principal secured creditor and interim lender. KPMG’s court documents state that Ecolomondo entered into a C$32.125 million project financing agreement with EDC in 2019 to support development and construction of the company’s Hawkesbury tire recycling facility in Ontario.

Ecolomondo Corporation also raised approximately C$14 million in equity, almost all of which was used for development and construction of the Hawkesbury plant.

Sale and Investment Solicitation Process approved in June

On June 22, the court approved a Sale and Investment Solicitation Process designed to identify potential purchasers or investors for Ecolomondo’s business and assets. KPMG Corporate Finance was engaged as financial advisor for the process.

The SISP was intended to test the market for transactions capable of preserving value from Ecolomondo’s technology, intellectual property, operating assets and tire recycling operations.

Successful bid selected through SISP

KPMG’s September reporting indicates that a successful bid was selected following the solicitation process and that the monitor entered negotiations with a potential purchaser to finalize an asset purchase agreement.

The identity of the purchaser and financial terms of the proposed transaction had not been publicly disclosed in the latest documents available on KPMG’s creditor information page.

Court repeatedly extended stay of proceedings

The initial stay protecting Ecolomondo and its subsidiaries from creditor enforcement was extended several times as restructuring work progressed. Following earlier extensions in June and August, the court extended the stay to September 14, then September 25 and subsequently October 9, 2026.

The September 25 order provided KPMG with additional time to finalize the purchase agreement with the potential purchaser selected through the SISP.

Hawkesbury plant placed largely into care and maintenance

During the restructuring, Ecolomondo’s Thermal Decomposition Process line at Hawkesbury was largely maintained in care-and-maintenance mode. Limited operation was permitted when required for demonstrations connected with the sale process.

The Hawkesbury facility was developed as an industrial-scale application of Ecolomondo’s proprietary TDP technology for recycling end-of-life tires into recovered commodities.

Environmental incident required remediation

The restructuring process was also affected by an environmental incident at the Hawkesbury facility on August 21, 2026. KPMG reported that an odorous water discharge required remediation and involvement from Ontario’s Ministry of the Environment, Conservation and Parks.

A September extension of the stay gave the monitor additional time both to continue the necessary remediation and to negotiate the asset purchase agreement with the prospective purchaser.

Ecolomondo technology targets recovered carbon black and tire-derived oil

Ecolomondo developed its Thermal Decomposition Process to convert end-of-life tires and other hydrocarbon waste into secondary materials. Outputs from tire processing include recovered carbon black, tire-derived oil, steel, process gas and fiber.

The company has positioned recovered carbon black and tire-derived oil as higher-value circular products capable of replacing part of the virgin raw materials traditionally used by tire, rubber, chemical and energy industries.

Hawkesbury facility central to company’s commercialization strategy

The Ontario plant represented Ecolomondo’s main attempt to move its TDP technology from pilot-scale development into commercial tire recycling. The facility was designed to demonstrate industrial production of recovered carbon black and tire-derived oil while serving as a reference for potential future plants.

Its performance and commercial development have therefore been central to the value of Ecolomondo’s technology portfolio and to the ongoing restructuring and sale process.

Potential sale could determine future of Ecolomondo technology

The outcome of the asset purchase negotiations will be important for the future of Ecolomondo’s tire pyrolysis technology, intellectual property and Hawkesbury facility. A completed transaction could preserve some or all of the company’s recycling operations under new ownership or investment.

As of the latest information published by KPMG, a potential purchaser had been identified and an asset purchase agreement was being finalized, but the transaction remained subject to completion and court approval.

Original creditor and stakeholder information is available from KPMG Canada, court-appointed monitor in the Ecolomondo CCAA proceedings.