Court approves Enviro's three-month reorganisation extension

Stockholm – Scandinavian Enviro Systems has secured court approval to extend its ongoing reorganisation by three months, giving the end-of-life tire pyrolysis company until 27 Aug to complete negotiations on long-term financing and finalise restructuring plan. 

The Gothenburg District Court approved the extension on 30 June, following Enviro's request to prolong the reorganisation process that began on 27 Feb. 

Enviro said work on the reorganisation plan was progressing as scheduled and that it now expects to present the plan during August, alongside financing for its implementation. 

The proposal will include a debt write-down, with the company currently estimating that non-priority creditors could receive payment of at least 25% of their claims, payable three months after the restructuring plan becomes legally binding. 

Enviro noted that the estimate remains preliminary and could change before the final plan is submitted. 

The company added that measures implemented during the initial phase of the reorganisation had created the conditions for completing the restructuring and establishing “a sustainable long-term capital structure.” 

The court ruling follows a dispute between Enviro and Infiniteria that escalated earlier this year after the recycler sought to terminate agreements covering their end-of-life tire pyrolysis joint venture and restructure operations. (ERJ report) 

Infiniteria is currently seeking a 'court declaration' that its exclusive licence to Enviro's patented tire pyrolysis technology for Europe remains in force and has claimed damages of €84 million.