Rörvik Timber’s application for reorganisation has been extended for a further three months.
Jönköping district court approved the application on November 13, allowing Rörvik to continue with its plans – including a crucial rights issue.
Rörvik offloaded its pressure treatment facility at Åstorp, as well as glue-laminated board producer BJU in Rottne earlier this year as part of its bid to return to sound financial footings.
Weak market conditions coupled with increased sales in markets (southern Europe and north Africa) with longer payment terms led to a squeeze on liquidity on Rörvik earlier this year, resulting in the business filing for bankruptcy protection.
The reorganisation plan calls for the repayment to creditors of up to Skr500,000 in full and 50% of the remainder of any liabilities.
