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Second Amended And Restated Initial Order And SISP Order Under The CCAA

Ecolomondo Corporation: Tire pyrolysis operator enters CCAA restructuring with court-approved sale process as cash burn outpaces revenue growth

By The Northwire Desk — AI Analysis Jun 22, 2026 · 16:35 ECM · 0.115 Ecolomondo Corporation

Executive Summary

On June 22, 2026, Ecolomondo Corporation received court approval for a Second Amended and Restated Initial Order (Second ARIO) and a Sales and Investment Solicitation Process Order (SISP Order) under the CCAA.
The Superior Court of Québec extended the stay of proceedings until August 21, 2026, to allow the Monitor (KPMG Inc.) and Export Development Canada to stabilize operations and reduce costs.
The court approved an increase in interim financing via an amended DIP facility and authorized a key employee retention program backed by a super-priority charge.
A two-phase bidding process for a potential sale or investment has been initiated, with a strict deadline of July 2, 2026, for related parties to declare intentions.
This follows the initial CCAA filing on May 21, 2026, which triggered a mass board resignation, CFO departure, and placement of the company under creditor protection.

Material Impact

This release is a procedural follow-up to the May 21, 2026 CCAA filing and does not introduce fundamentally new information.
The extension of the stay and the initiation of a sale process are standard CCAA mechanisms designed to preserve enterprise value while exploring strategic alternatives.
The increased DIP facility and retention program are necessary to maintain operations during the restructuring but do not resolve the underlying solvency issues.
The market has already priced in the distress, as evidenced by the stock trading at its 52-week low of $0.12. The sale process introduces uncertainty regarding asset valuation, potential dilution, and loss of control, but the negative impact is already reflected in the price action.

ECM · Price

Company Overview

Ecolomondo Corporation operates a proprietary Thermal Decomposition Process (TDP) to recycle end-of-life scrap tires into recovered carbon black (rCB), tire-derived oil (TDO), steel, and syngas.
The company's primary commercial facility is located in Hawkesbury, Ontario, with plans for a larger 6-reactor facility in Shamrock, Texas, and a joint venture with ARESOL to build four TDP plants in the European Union.
Revenue streams include tipping fees for tire disposal and sales of ISCC Plus certified rCB and TDO to industrial off-takers.
The business model relies on scaling production, securing long-term off-take agreements, and leveraging modular technology to reduce capital expenditures for future facilities.

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