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Eco Log applies for financial reorganization – new capital to secure operations

Eco Log Sweden AB, who are specialists in forest machines, have recently faced liquidity issues. Today the company has chosen to apply for financial reorganization to Hälsingland District Court. The purpose of the reorganization is to create long-term sustainable conditions. The day-to-day operations continue as usual during the reorganization process without affecting customers or deliveries.

Financial reorganization is an instrument to avoid bankruptcy for companies that have payment difficulties but in the long run have good opportunities to survive. During the reorganization, the company is given time to reconstitute and rebuild its finances and operations. This takes place step by step according to a set process specified by the law and includes collaboration with an administrator who is approved by the district court. It is still the regular board and management that represent the company and are responsible for the operations during the reorganization.

Eco Log manufactures and sells efficient forest machines for sustainable forestry and has approximately 120 employees. The company was hit hard by the Covid pandemic, which led to complications in global supply chains with component shortages as a result. In addition, Russia's invasion of Ukraine has further created disturbance in the global supply chain. The increased material costs and disruptions in supply chains have resulted in a delay of certain deliveries. Since the business is highly capital intensive, the company is particularly affected by delayed deliveries, which has led to a deterioration of the company's liquidity.

- It is a sad and tough decision to take the company through reorganization, but we must have a long-term perspective and create sustainable conditions for the company to save jobs, the business and future deliveries. In the short term, it is sad that creditors are affected, but in the long term, this marks a turning point that will make us stronger and more stable as a customer and a company, says Niklas Jonsson, CEO of Eco Log.

Linda Schenholm at Carler Advokatbyrå is the proposed administrator. The reorganization only concerns Eco Log Sweden AB. It does not concern SP Maskiner in Ljungby AB, Gremo AB, Maskinservice in Norden AB, Eco Group Log AB or Eco Log Försäljning AB.

Negotiation of change of ownership
There are advanced negotiations with Lazarus Industriförvaltning AB, which is prepared to provide the necessary capital, but details remain to be settled. When the formalities are completed, a majority of Eco Log is acquired by Lazarus, which has extensive experience in operational turn-arounds of companies in complex situations.

- I am proud to have experienced and active partners who believe in the company and understand the potential going forward. It is also a reassuring message to our employees, suppliers and customers, concludes Niklas Jonsson.

Questions about the reorganization process can be sent to administrator Linda Schenholm via

Questions to Eco Log Sweden AB can be sent to Niklas Jonsson, CEO, via

FAQ - for customers >>

FAQ - for crediters/suppliers >>

Facts about financial reorganization >>

Press release for download >>