The board of directors of Scandinavian Enviro Systems AB (publ) ("Enviro" or the "Company") has tonight resolved to apply for company reorganization. The board of directors assesses that Enviro has sufficient liquidity to operate the business during the first three months of the reorganization. During the reorganization, operations will continue as usual, in parallel with measures to strengthen Enviro's liquidity and profitability.
The board of directors of Enviro has tonight resolved to apply for company reorganization at Gothenburg District Court. The resolution to apply for company reorganization has been prompted primarily by liquidity shortage due to unfavorable and burdensome contractual terms linked to the joint venture Infiniteria, cost burdens resulting from disagreements regarding Enviro's work on a plant project in Sweden, and ongoing arbitration proceedings that have complicated the ability to secure additional financing. In addition, Enviro's operations at the recycling plant in Åsensbruk have not generated sufficient cash flows. A company reorganization is deemed necessary to provide Enviro with the time required to negotiate with creditors in order to create a long-term sustainable financial solution and ensure the continuation of operations.
The board of directors assesses that Enviro has sufficient liquidity to operate the business during the first three months of the reorganization and intends to secure additional financing within this period to enable the company reorganization, with the ultimate goal of being able to propose a financed reorganization plan.
The application for company reorganization is subject to approval by Gothenburg District Court.
The application for company reorganization covers only the parent company Scandinavian Enviro Systems AB (publ).