Ecolomondo: Tire Reviver's price stays sealed, and $350,000 waits on the pond

On October 22, 2026, Justice Janet Michelin of the Superior Court of Québec, Commercial Division, approved the sale of substantially all of Ecolomondo's assets to Tire Reviver Inc. Nobody contested it, per the Approval and Vesting Order, Oct. 22, 2026, paras. 4, 9 and the Minutes of the Hearing, Oct. 22, 2026, p. 4. The business being sold converts hydrocarbon-based waste, "primarily scrap tires," into reusable industrial products through what the purchase agreement calls "its proprietary thermal decomposition process technology." Its assets in the sale include the plant at 1592 Tessier Street in Hawkesbury, Ontario, the inventory, the machinery and equipment, the intellectual property, among it the registered trademark MONDO BLACK & DESIGN, and the information technology systems, per the AVO, Oct. 22, 2026, Sch. A (APA), recital A, ss. 1.1(uuu), 2.1. Tire Reviver, whose registered office is in Oakville, Ontario, intends to keep operating the plant as a going concern, according to the monitor's Fourth Report. What it is paying is set out in an appendix to that report filed under seal, per the AVO, Oct. 22, 2026, Sch. A (APA), parties and the Fourth Report of the Monitor, Oct. 6, 2026, para. 32(b)–(d).

Ecolomondo Corporation, a Montréal company listed on the TSX Venture Exchange, and four related debtors have been under the CCAA since May 21, with KPMG Inc. as monitor and Export Development Canada as interim lender, per the Fourth Report, Oct. 6, 2026, paras. 1, 3 and the Monitor's Application for an AVO and Stay Extension, Oct. 5, 2026, para. 7(d). When the case was reported here on September 11, the monitor had chosen a bidder it did not name and was finalizing the agreement. The agreement was signed on October 1 by the monitor "on behalf of the Debtors," per the Fourth Report, Oct. 6, 2026, para. 29(n).

Two binding offers, and one price raised

At the hearing the court heard sworn testimony from the senior vice-president who signed the monitor's Fourth Report, and put a question of its own to the witness, per the Minutes, Oct. 22, 2026, p. 2 and the Fourth Report, Oct. 6, 2026, p. 15. The process behind the sale is set out in that report. From July 2 the sale agent, KPMG Corporate Finance Inc., contacted 86 parties, "comprised of Canadian and international strategic and financial parties." Nineteen signed non-disclosure agreements and got into the data room, and bidders had three opportunities to visit the plant and watch live demonstrations of the technology. Six letters of interest arrived on August 10; on August 12 the monitor, in consultation with the interim lender, found four of them qualified for the second phase. The deadline for binding offers was moved from August 24 to August 31 "as a result of the Environmental Incident," and on August 31 two binding offers came in. No auction was held, per the Fourth Report, Oct. 6, 2026, paras. 6(d), 28, 29(a), (c), (e)–(k).

On September 3, the report says, Tire Reviver "revised its purchase price upward following discussions between the Purchaser and the SISP Agent." On September 8 the monitor and the buyer agreed on the material terms, and the monitor, in consultation with the sale agent and the interim lender, declared Tire Reviver's bid the successful one. The monitor considers that bid "the most advantageous to the Debtors' stakeholders," for reasons set out in the sealed appendix, per the Fourth Report, Oct. 6, 2026, paras. 29(l)–(m), 30. Interest also came from outside the process. The monitor "received unsolicited indications of interest from parties that had not participated in the SISP," decided it was not in the best interest to let them participate, and told them so, per the Fourth Report, Oct. 6, 2026, para. 31. Before the process launched, the monitor's application adds, it had received one related party notice, and measures were put in place so that the related bidder "would not receive any information regarding the conduct of the SISP," per the AVO Application, Oct. 5, 2026, paras. 23(c), 24.

The monitor recommended the deal for six reasons. The process was "commercially reasonable" and involved "a thorough canvassing of the global market"; the transaction "provides the greatest recovery available in the circumstances," a point the report again refers to the sealed appendix; it preserves employment for the employees the buyer takes on; the buyer "operates within the end-of-life tire recycling value chain" and has existing operations sourcing and processing scrap tires; it "has sufficient committed capital to fund the Purchase Price in its entirety, without recourse to external debt financing"; and the interim lender was consulted and supports it, per the Fourth Report, Oct. 6, 2026, para. 33. Justice Michelin's decision, recorded in the minutes and signed, sets out the six factors in s. 36(3) of the CCAA, recites the same process figures, and notes "the support for the transaction by the interim lender" before finding that "the Court is satisfied that the Proposed Transaction should be approved," per the Minutes, Oct. 22, 2026, pp. 3–4.

What stays behind, and what goes with the plant

Among what the buyer does not take are the cash and cash equivalents, the accounts receivable, the prepaid expenses and deposits with suppliers, utilities and governments, and the tax refunds and credits. Among the liabilities that stay with the sellers are the pre-filing secured debt and the pre-filing trade payables, subject to cure costs, per the AVO, Oct. 22, 2026, Sch. A (APA), ss. 2.2(a)–(c), (m), 2.4(e), (h).

The order schedules two agreements for assignment to the buyer: outstanding purchase orders from Soucy Techno Inc. for recycled carbon black, and the collective agreement between Ecolomondo Environmental (Hawkesbury) Inc. and the United Steelworkers on behalf of Local 6565, effective May 16, 2026 to May 15, 2029, with its three letters of agreement, per the AVO, Oct. 22, 2026, Sch. D. It assigns them automatically once the monitor's certificate issues, but for the collective agreement it records that the buyer "has agreed to assume such collective agreement pursuant to the Purchase Agreement," effective at closing, "nothing herein constituting an assignment pursuant to section 11.3 of the CCAA." The buyer takes on obligations under the assigned agreements only from closing, together with the cure costs, which it pays, per the AVO, Oct. 22, 2026, paras. 16–17 and the Fourth Report, Oct. 6, 2026, para. 32(f).

Under the agreement, and conditional on closing, the buyer gives notice of continuing employment to the employees it designates, on terms "substantially similar and no less favourable in the aggregate" to their current ones, and the sellers terminate or lay off the rest before closing. The buyer also assumes the liabilities arising from the pre-closing termination or layoff of any unionized employee who does not go across, including recall, severance and vacation, per the AVO, Oct. 22, 2026, Sch. A (APA), ss. 2.3(d)(vii), 7.8(b), (d).

The pond

The agreement defines what it calls the August 21 Event as "the release on or about August 21, 2026 of water from the Retention Pond into the municipal drainage ditch of the Town of Hawkesbury," together with its consequences, including the complaints made to Ontario's Ministry of the Environment, Conservation and Parks. The sellers must finish the remediation at their own cost before closing; for the ministry's confirmation they owe only commercially reasonable efforts. Liabilities arising out of the event stay with them, per the AVO, Oct. 22, 2026, Sch. A (APA), s. 7.14.