Scandinavian Enviro Systems AB has announced that it has filed for bankruptcy for its wholly owned subsidiary, Tyre Recycling in Sweden AB, with the District Court of Gothenburg
The Reorganisation
The decision to file for bankruptcy for Tyre Recycling in Sweden AB forms part of the ongoing Enviro reorganisation and aims to strengthen the company’s liquidity and support long-term profitability. According to Enviro, operations at its Gothenburg headquarters will continue as normal while further measures are implemented under the reorganisation process.
The subsidiary operated Enviro’s recycling facility in Åsensbruk, which the company says played a key role in validating its patented technology for recovering valuable raw materials from end-of-life tyres. Enviro stated that the development and validation work at the facility has now been completed. As the plant’s operations have not generated sufficient profitability, the board decided to initiate bankruptcy proceedings for the subsidiary responsible for running the site.
The move is expected to affect Enviro’s financial results through an impairment of approximately SEK 84 million. The bankruptcy filing has been submitted to the Gothenburg District Court and the ongoing reorganisation process applies only to the parent company, Scandinavian Enviro Systems AB (publ).
