Scandinavian Enviro Systems (Enviro) has announced a proposed reorganization plan for its ongoing company reorganization, including a debt settlement proposal and new conditional financing intended to support the settlement and continued operations. The Gothenburg-based tire recycling technology company said the plan will be sent to concerned parties and that it intends to ask the Gothenburg District Court to open plan proceedings and set a date for a plan meeting. Under the proposed debt settlement, priority and non-priority creditors, excluding related-party creditors without priority, would receive 30% of the nominal claim amount, while related-party creditors without priority would receive 0%. Enviro also entered into a conditional financing agreement with Nordic Restructuring and Growth Capital 1 for convertible loans of up to SEK 100 million and amended its existing financing arrangement with Alumni Capital Limited, increasing that facility from SEK 50 million to SEK 80 million.

Debt settlement proposal included in reorganization plan

Enviro said the reorganization plan includes a proposed debt settlement corresponding to a composition of up to approximately MSEK 35 in total. Priority and non-priority creditors, other than related-party creditors without priority, would receive 30% of the nominal amount of their claims. Related-party creditors without priority would receive no payment under the proposal.

At the planned meeting, concerned parties will be divided into groups and given the opportunity to vote on adoption of the reorganization plan. The company said the plan is accompanied by a report from the reorganization administrator, a list of assets and liabilities, and a statement explaining the division of concerned parties into groups.

Company seeks extension of reorganization period

Enviro’s company reorganization began on February 27, 2026, following a decision by the Gothenburg District Court. The court later approved an extension until August 27, 2026. Enviro has now applied, in consultation with the reorganization administrator, for a further extension until November 27, 2026.

The company said the additional time is needed to allow creditors to review and decide on the proposed debt settlement, and to enable a plan meeting and vote on the reorganization plan. Enviro expects to request plan proceedings during September 2026, with the exact meeting date to be determined by the Gothenburg District Court.

Nordic Restructuring facility totals SEK 100 million

Enviro has entered into a conditional agreement with Nordic Restructuring and Growth Capital 1 covering convertible loans of up to SEK 100 million. The financing is divided into two facilities. Facility I amounts to SEK 35 million and may be used primarily to finance the proposed debt settlement with creditors, with any remaining funds available for general corporate purposes. Facility II amounts to SEK 65 million and may be used for general corporate purposes.

Both facilities are conditional on Enviro’s reorganization plan becoming legally effective and the company reorganization being completed. The company said the financing is a central part of measures intended to strengthen its financial position and secure working capital after the reorganization period.

Convertible loans to be available over 36 months

The agreement gives Enviro the right, over a 36-month period, to request convertible loans in tranches of up to SEK 5 million each. Each loan will have a 24-month term from disbursement and will be interest-free.

Nordic Restructuring and Growth Capital will have the right to request conversion of all or part of each tranche into new Enviro shares during the 24-month conversion period. The conversion price will correspond to 95% of the average of the three lowest volume-weighted average prices during the ten trading days before a conversion request, but may not be lower than the quota value of the shares.

Warrants included in Nordic Restructuring arrangement

Nordic Restructuring and Growth Capital may receive warrants in connection with each tranche, with a maximum of 2,500,000 warrants per tranche. The total number of warrants under the arrangement may amount to 50,000,000.

Each warrant will entitle the holder to subscribe for one new share in Enviro. The subscription price will correspond to 150% of the volume-weighted average price on the trading day immediately before the relevant drawdown request, but not below the quota value of the shares. The warrants will be exercisable for three years from the issue date and are not intended to be admitted to trading.

Alumni Capital facility increased to SEK 80 million

Enviro also entered into an amendment agreement with Alumni Capital Limited, increasing the existing financing arrangement from SEK 50 million to SEK 80 million. The maximum amount for each individual request is increased from SEK 5 million to SEK 5.5 million.

The amendment also increases the maximum number of warrants that may be issued to Alumni Capital from 50,000,000 to 80,000,000. In connection with each subscription, Alumni Capital may receive up to 2,750,000 warrants, proportionally adjusted if the request is below SEK 5.5 million. The other terms of the arrangement remain unchanged.

Directed share issues approved as commitment fees

Enviro’s board resolved on two directed share issues as consideration for the financing arrangements. The first issue consists of 52,966,101 shares to Nordic Restructuring and Growth Capital at a subscription price of SEK 0.1888 per share, corresponding to a commitment fee of SEK 10 million for the SEK 100 million financing facility.

The second issue consists of 12,870,357 shares to Alumni Capital at a subscription price of SEK 0.186475 per share, corresponding to a commitment fee of SEK 2.4 million for the increased facility. Payment in both issues will be made by set-off against the investors’ receivables from Enviro for the respective commitment fees.

Existing shareholders face dilution of about 5.47%

Through the directed issues, the number of shares in Enviro will increase by 65,836,458, from 1,137,994,435 to 1,203,830,893. The company said this corresponds to dilution of approximately 5.47% for existing shareholders.

The board said the directed issues deviate from shareholders’ pre-emptive rights because they are intended to secure financing in a time- and cost-efficient way. Enviro said a rights issue would take more time, create execution risk and likely require underwriting commitments, which the board considered unsuitable given the company’s financial position and the time frame for the reorganization.

Financing intended to support continued operations

Enviro said the Nordic Restructuring and Alumni Capital arrangements together represent undrawn financing commitments of approximately MSEK 175, excluding proceeds from any exercise of warrants that have already been issued or may be issued under the arrangements.

The company said the financing is intended to enable the debt settlement, complete the ongoing reorganization and provide working capital for operations during and after the reorganization period.

Enviro continues work with tire recycling technology

Scandinavian Enviro Systems develops patented technology for recovering valuable raw materials from scrapped and end-of-life products, including tires. The company says new tires produced using carbon black recovered with its technology can reduce carbon dioxide emissions by up to 93% compared with virgin carbon black.

The reorganization and financing measures come as Enviro works to preserve and develop its business in tire recycling, recovered carbon black and circular raw material recovery. The company is headquartered in Gothenburg and is listed on Nasdaq First North Growth Market.

Information source: Enviro.