Scandinavian Enviro Systems (Enviro) has adopted a revised proposal for its ongoing company reorganization, changing the classification of certain creditors while leaving the main debt settlement terms unchanged. Enviro, which has been under reorganization since February 27, 2026, said the revised proposal replaces the version published on August 26 and follows feedback from affected parties as well as the company’s own review of creditor claims. The principal change concerns creditors that previously asserted rights of retention: they will no longer form a separate preferential group and will instead be treated as non-preferential creditors. At the same time, auditor PwC has been moved into the preferential creditor category after Enviro accepted that its statutory audit claim qualifies for priority treatment. Under the revised proposal, public-law creditors and unrelated non-preferential creditors would still receive 30% of their claims, related creditors would receive nothing, and PwC’s statutory audit claim would be paid in full. The settlement is intended to be financed through a SEK 35 million portion of Enviro’s convertible loan agreement with Nordic Restructuring and Growth Capital 1.

Revised plan replaces August proposal

Enviro’s company reorganization began following a decision by the Gothenburg District Court on February 27, 2026.

The process has since been extended twice, most recently through November 27, 2026.

Enviro published its previous proposed reorganization plan on August 26 and distributed it to affected parties. The company said the latest revisions follow creditor feedback and further internal consideration.

Five creditor groups remain under revised structure

Affected parties will continue to be divided into five groups under the revised proposal.

The main change is that the former Group A has been removed. That group had included creditors claiming a right of retention over certain property.

Those creditors will instead be transferred into a group of non-preferential creditors.

Enviro rejects preferential treatment for retention claims

Enviro said creditors previously placed in Group A had been asked to substantiate their claimed rights of retention but had not done so.

The company therefore concluded that these claims should not be treated as preferential.

Enviro also said the property to which the alleged retention rights would apply has no economic value to the company from a going-concern perspective.

PwC becomes sole creditor in new Group A

Under the revised structure, Group A will instead consist of Enviro’s auditor, PwC.

After the previous reorganization proposal was distributed, PwC asserted that its claim relating to the statutory audit should be treated as preferential. Enviro said it accepted that position.

The revised proposal therefore provides for PwC’s statutory audit claim to be paid in full.

Other debt settlement terms remain unchanged

The proposed settlement terms for the remaining creditor groups have not changed from the August plan.

Creditors with claims under public law and unrelated non-preferential creditors are proposed to receive 30% of their claims.

Related-party creditors would receive 0% under the proposed settlement.

Payments planned within three months of final approval

Payments under the debt settlement are proposed to be made within three months after the reorganization plan becomes final and non-appealable.

Disputed claims would not be paid until the relevant dispute has been finally resolved or the parties have reached a binding settlement.

Revisions intended to reflect creditors’ legal status

Enviro said the purpose of changing the creditor classification is to create groups that more accurately reflect the legal status of the affected parties.

The company also wants to establish a plan capable of being approved by creditors and subsequently confirmed by the Gothenburg District Court.

SEK 35 million financing earmarked for debt settlement

The proposed debt settlement is to be financed through Enviro’s convertible loan and warrant agreement with Nordic Restructuring and Growth Capital 1, signed on August 26, 2026.

SEK 35 million of that financing is specifically intended to fund the creditor settlement.

Enviro proposes that this SEK 35 million should qualify as new financing under the reorganization plan and receive a general right of priority.

Financing forms part of wider SEK 100 million facility

The NRGC agreement provides Enviro with access to convertible loans totaling up to SEK 100 million.

The SEK 35 million portion is primarily intended to finance the restructuring settlement, while additional financing under the agreement can be used for general corporate purposes.

Revised proposal to be sent to affected creditors

Enviro will distribute the revised reorganization proposal to affected parties together with the reorganization administrator’s report.

This will give creditors formal information on the revised group structure and settlement terms before the next stage of the process.

Enviro plans to seek formal court proceedings

The company said it intends to apply shortly to the Gothenburg District Court for formal plan proceedings.

During those proceedings, affected parties will be divided into creditor groups and given the opportunity to vote on adoption of the reorganization plan.

District court confirmation remains necessary

Even if the plan receives the required creditor support, it must still be confirmed by the district court before it becomes effective.

The revised creditor classification is therefore intended to reduce uncertainty over voting groups and strengthen the legal basis of the proposal before formal proceedings begin.

Reorganization remains ongoing

The November revision does not mean that Enviro’s restructuring has been completed. The company remains under reorganization and must still secure creditor approval, court confirmation and implementation of the proposed financing arrangements.

The current reorganization period runs through November 27, 2026, unless extended or otherwise decided by the court.

Enviro continues tire pyrolysis technology business during restructuring

Scandinavian Enviro Systems develops patented technology for recovering valuable raw materials from end-of-life products, including tires.

The company’s tire pyrolysis process is designed to recover carbon black and oil from end-of-life tires for reuse in industrial applications.

Enviro says using carbon black recovered with its technology in new tire production can reduce carbon dioxide emissions by up to 93% compared with virgin carbon black.

Revised plan focuses on creditor treatment rather than operating strategy

The November 9 announcement primarily concerns creditor classification and debt settlement mechanics rather than changes to Enviro’s tire recycling technology or commercial strategy.

The next major milestone will be the company’s application for formal plan proceedings and the subsequent creditor vote on whether to adopt the revised reorganization plan.

Original announcement by Scandinavian Enviro Systems.