Enviro seeks reorganisation extension as secures new financing support
27 May 2026
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Tire pyrolysis company cites ongoing investor talks, licensing discussions and restructuring measures
Stockholm – Scandinavian Enviro Systems has announced that it will apply to extend its ongoing company reorganisation by a further three months as it continues talks on long-term financing, licensing agreements and restructuring measures to restore profitability.
In a 26 May statement, the Swedish end-of-life tire (ELT) pyrolysis company said the extension was a “necessary prerequisite” for completing ongoing financing discussions and preparing a formal reorganisation plan.
Enviro added that an updated liquidity forecast showed it has “sufficient funds” to continue operating during the proposed extension period.
According to the company, liquid funds are expected to amount to around SEK20 million (€1.8 million) at the end of May.
During the continued restructuring period, Enviro intends to further strengthen liquidity through financing support from Alumni Capital under a previously announced equity-related funding arrangement.
On 22 May, Enviro said that it had secured an equity-line financing facility of up to SEK50 million from Alumni Capital, under which the investor can subscribe for newly issued shares and warrants over a twelve-month period.
The agreement also included an initial directed share issue and warrants intended to support the restructuring process.
In its latest announcement, Enviro said that since the start of its reorganisation 27 Feb, it has implemented a series of measures to strengthen its financial position and reduce cash outflow. (ERJ report)
These include terminating agreements linked to the Infiniteria joint venture “to release Enviro from onerous and loss-making commitments.” (ERJ report)
Furthermore, the company filed for bankruptcy for subsidiary Tyre Recycling in Sweden AB to wind down “capital-consuming operations.”
The ELT recycler also said it continues negotiations with potential investors regarding long-term financing solutions and possible future composition arrangements.
"Interest shown by potential investors," said the company, suggests agreements could be concluded during the coming three-month period.
At the same time, Enviro said it is continuing discussions with potential industrial partners aimed at securing future revenues from technical services, regulatory support and licensing agreements linked to its tire pyrolysis technology.
The company stated that feasibility work related to a previously announced North American licensing project is progressing “better than planned”, with permit application processes expected to begin during the third quarter. (ERJ report)
Enviro also announced that it recently signed a letter of intent covering a pilot plant and multiple full-scale tire pyrolysis plants in Brazil with an undisclosed partner.
In addition, the company said it has secured a property option and submitted an environmental permit application for its planned first wholly owned Nordic full-scale pyrolysis facility. (ERJ report)
Subject to court approval of the restructuring extension, Enviro said it expects to present a formal reorganisation plan during July or August, including financing arrangements and a proposal for debt write-downs.
Enviro said it expects revenues from licensing, technical services and regulatory services to begin contributing to cash flow as early as autumn.
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