Ecolomondo announces agreement in principle to restructure loan

By Wendy Van Sickle

Columbus, Ohio, Nov. 30 – Ecolomondo Corp. Inc. reached an agreement in principle to restructure its original loan agreement with Export Development Canada (EDC), according to a press release.

The original $32.1 million loan executed on April 3, 2019 financed the construction of the company’s new turnkey thermal decomposition facility in Hawkesbury, Ont., that will process end-of-life tires to produce reusable resources.

In order to give the parties time to finalize documentation for the restructuring, EDC has agreed to postpone principal and interest payments to Dec. 29.

Subject to the execution of final documentation, which is expected to be completed by mid-December, the loan is to be restructured with the interest rate capped at 8.5%. Capital principal and interest payments will be postponed until May 2024, with the original loan to then be repaid in quarterly installments of principal and interest based on a 25-year amortization.

The final balance and all capitalized interest will be repayable when the loan matures in May 2029.

The company said this restructured loan will allow it to work through the final steps to bring the new Hawkesbury facility to commercial operations.

The St. Laurent, Quebec-based Ecolomondo is a Canadian cleantech company which uses a Canadian-developed green technology process called Thermal Decomposition Process to convert hydrocarbon waste into marketable commodity end-products, namely carbon black substitute, oil, gas and steel.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.