Ecolomondo: the board resigned, so the monitor filed the application

Ecolomondo Corporation is headquartered in Montréal and listed on the TSX Venture Exchange and the OTCQB. With its subsidiaries it operates a cleantech and waste recycling business converting hydrocarbon-based waste — primarily scrap tires — into reusable industrial products using its proprietary thermal decomposition technology, per First Report of the Monitor, June 1, 2026, paras. 1–2.

It obtained an initial order under the CCAA from the Québec Superior Court on May 21, 2026, with a stay running eleven days and a comeback hearing set for June 2. KPMG Inc. was appointed monitor. Export Development Canada is the secured creditor and interim lender, per First Report, June 1, 2026, para. 3.

By the time the extension application went in, there was no one left to bring it.

The morning of the filing

On the morning of the filing date, the debtors issued a press release saying they had sought CCAA protection and that all but one of the directors had resigned. The regulators were informed and trading in Ecolomondo Corporation was halted on May 21, 2026, per First Report, June 1, 2026, paras. 15–16.

One director remained. On May 29 the monitor notified the application to extend the stay to June 19 and for an amended and restated initial order. The last director resigned shortly after the service of that application — in the hours following it, per First Report, June 1, 2026, paras. 5–6, 17.

Hence the procedural inversion the report records plainly:

In light of the absence of a board, the Application is brought forward by the Monitor, with the support of EDC, and the relief provided pursuant to the Proposed ARIO reflects these particular circumstances and the powers to be afforded to the Monitor in this exceptional context.

Per First Report, June 1, 2026, para. 18.

A CCAA proceeding is built on a debtor in possession. The company applies, the company proposes, the company negotiates with creditors, and the monitor watches and reports. Remove the board and the applicant disappears: nobody can instruct counsel, authorise a filing, sign a term sheet or decide anything.

The answer here was not to convert to a receivership or a bankruptcy. It was to keep the CCAA proceeding and shift the initiating function to the court's own officer, with additional powers granted for that purpose — with the interim lender's support, and expressly framed as exceptional.

What the monitor did in eleven days

The activity list is worth reading because it is what stepping into a vacuum actually looks like, per First Report, June 1, 2026, para. 20.

The statutory basics: notice published in the Globe and Mail and La Presse on May 28, prescribed documents filed with the Office of the Superintendent of Bankruptcy, notice to creditors sent, a website and a dedicated email address stood up.

Then control of the assets: liaising with CIBC and implementing procedures to obtain control of the debtors' accounts; executing the DIP term sheet as authorised by the initial order; reviewing and approving payment of operating expenses.

Then the site: visiting the Hawkesbury Facility and examining it to ensure security protocols were in place, and touring it with the Chief Operating Officer to understand and identify potential environmental issues. Meeting the employees. Meeting certain important suppliers. Meeting EDC. Meeting counsel to discuss various environmental matters.

And one item that deserves attention in its own right: engaging third-party professionals to implement conservatory and safeguarding measures to preserve and secure the debtors' books and records, data, information systems, and the continuity and integrity of IT infrastructure and servers.

When every director has left, nobody is paying the hosting invoices or holding the administrator credentials. The records of a public company — the ones a monitor, a regulator, an auditor and any eventual purchaser will need — sit on systems that stop when the payments stop. Securing them in week one is not housekeeping; it is the difference between an orderly process and a reconstruction exercise.

Three alternatives, and hazardous material

The substantive question the extension is for is stated in three words: continuing operations, limiting operations, or implementing a care-and-maintenance program. The monitor has been working with the debtors' engineering team to evaluate them, per First Report, June 1, 2026, para. 21.