Enviro applies for ‘reorganisation’ at Gothenburg court

Gothenburg, Sweden – Scandinavian Enviro Systems AB (Enviro) is to “apply for a company reorganisation” at Gothenburg District Court and has “sufficient liquidity” to operate over the first three months of the legal process.

During the reorganisation, “operations will continue as usual, in parallel with measures to strengthen Enviro's liquidity and profitability,” said the waste tire pyrolysis company’s 26 Feb announcement.

The decision, explained Enviro, was primarily prompted by liquidity shortage due to “unfavourable and burdensome contractual terms linked to the joint venture Infiniteria.”  ERJ report

In particular, it said, “cost burdens resulting from disagreements regarding Enviro's work on a plant project in Sweden, and ongoing arbitration proceedings have complicated the ability to secure additional financing.”

Enviro added that operations at the recycling plant in Åsensbruk had not generated sufficient cash flows: further necessitating talks with creditors “to create a long-term sustainable financial solution and ensure the continuation of operations.”

According to its management board’s statement, Enviro aims to secure additional financing “with the ultimate goal of being able to propose a financed reorganization plan.”