Scandinavian Enviro Systems has announced that its board of directors has resolved to apply for the company reorganisation at the Gothenburg District Court
Liquidity Shortage
According to Scandinavian Enviro Systems, the decision has been driven primarily by a liquidity shortage, with unfavourable contractual terms linked to the joint venture with Infiniteria, cost burdens arising from disagreement relating to Enviro’s work on a plant project in Sweden and ongoing arbitration proceedings that have affected the company’s ability to secure additional financing as contributing factors.
The board assesses that Enviro has sufficient liquidity to continue operating during the first three months of the reorganisation process, with business activities expected to continue as normal, while measures are taken to strengthen liquidity and improve profitability. The company aims to secure additional financing within this time frame, with the goal of proposing a fully financed reorganisation plan.
The application for Enviro reorganisation is subject to approval by the Gothenburg District Court and applies solely to the parent company, Scandinavian Enviro Systems AB.
