Tyre recycler Scandinavian Enviro Systems AB has filed for bankruptcy for its wholly-owned subsidiary Tyre Recycling in Sweden AB with the District Court of Gothenburg.
The decision is part of the ongoing company reorganisation of Enviro and aims to strengthen the company’s liquidity and long-term profitability. Enviro’s operations in Gothenburg will continue as normal in parallel with additional measures within the framework of the reorganisation.
Enviro is currently undergoing a company reorganization and the decision to file for bankruptcy for the wholly-owned subsidiary Tyre Recycling in Sweden AB is a measure intended to strengthen Enviro’s liquidity and profitability, it adds.
The subsidiary’s recycling facility in Åsensbruk has played an important role in validating Enviro’s technology and the products produced using this technology. This task is now considered completed and, as the operations at the facility have not been profitable, the company has decided to file for bankruptcy for the subsidiary operating the facility.
The bankruptcy is expected to impact Enviro’s results through an impairment of approximately SEK84 million.
The bankruptcy petition has been submitted to the District Court of Gothenburg.
The ongoing company reorganisation only concerns the parent company, Scandinavian Enviro Systems AB, it adds.