Court grants Enviro three-month extension for restructuring plan

A Swedish court has approved a three-month extension for Scandinavian Enviro Systems’ ongoing reorganisation process, pushing the deadline to August 27. The Gothenburg District Court granted the extension on June 30, allowing the end-of-life tire pyrolysis specialist to continue negotiations on long-term financing and finalise its restructuring plan. The company, which began its reorganisation on February 27, now expects to present the plan in August alongside implementation financing. The proposal includes a debt write-down, with Enviro estimating that non-priority creditors could recover at least 25% of their claims, payable three months after the plan becomes legally binding. The company cautioned that this estimate remains preliminary and may change before submission. Enviro stated that measures taken during the initial phase of the reorganisation have laid the groundwork for completing the restructuring and establishing a sustainable long-term capital structure. The court’s decision follows a legal dispute with Infiniteria, which has sought to terminate agreements related to their joint venture in end-of-life tire pyrolysis and restructure operations. Infiniteria has also filed for a court declaration affirming the validity of its exclusive licence to Enviro’s patented tire pyrolysis technology in Europe and is claiming €84 million in damages. The case highlights the financial and operational challenges facing Enviro as it navigates restructuring amid ongoing legal conflicts.