In December of 2019, Investissement Québec (IQ), in its capacity as senior secured creditor to the Fortress Group with approximately C$100M of secured claims against the Fortress Group, initiated creditor-led CCAA proceedings in respect of the latter, with a view to monetize all or substantially of its assets, maximize its recovery and, if possible, ensure the pursuit of the Fortress Group, as a going concern.

After multiple years of canvassing the market with a view to find one or several purchaser(s), an offer was received from Evolys Québec Inc., a newly formed joint venture between Rio Tinto and Aymium, who intended to manufacture a renewable metallurgical biocarbon product to reduce carbon emissions in large scale industrial processes. This biocarbon, sourced from biomass residues, would offer an alternative for anthracite currently used in ilmenite smelting processes at Rio Tinto’s metallurgical complex in Sorel-Tracy.

After several months of on-going negotiations, Investissement Québec, the Ministère de l’Économie, de l’Innovation et de l’Énergie and Évolys were finally able, with the assistance of the Monitor, to reach an agreement with respect to a transaction involving the sale and purchase of the Fortress Group’s assets.

In July 2024, this transaction was approved by the Superior Court of Québec (Commercial Division), and subsequently closed.

Stikeman Elliott acted as counsel to IQ and MEIE.