Cinis Fertilizer files for bankruptcy after funding talks collapse

Cinis Fertilizer (OSTO:CINIS) has filed for bankruptcy, citing an inability to secure additional financing to continue operations, the company said on Monday.

The Stockholm-listed company said it submitted its bankruptcy filing to the Ångermanland District Court, along with its wholly owned subsidiary, Cinis Sweden. The decision follows months of financial strain and unsuccessful attempts to secure additional liquidity.

In a statement, the company said it had been in intensive discussions with stakeholders over possible short-term financing solutions, but no agreement was reached. As a result, the board concluded that the company was insolvent and had no viable alternative to filing for bankruptcy.

“The board deeply regrets that it became necessary for Cinis Fertilizer to file for bankruptcy,” said chairman Roger Johansson. “We have evaluated various courses of action and worked intensively to find a solution, but unfortunately, time was not on our side and no agreement was reached.”

Cinis said there has been interest from external parties in continuing the business through another legal entity. Any potential sale or continuation of operations will now be handled by the court-appointed bankruptcy administrator.

“There is a need for Swedish production of mineral fertilizer, and our hope is that the bankruptcy administrator will soon find a good solution that ensures the continuation of the business,” Johansson said.

The company had previously warned on January 9 that it was facing acute liquidity constraints and required additional funding to maintain operations.

Cinis Fertilizer produces potassium sulfate, a specialty mineral fertilizer, using a process that recycles industrial byproducts from battery manufacturing, pulp production, and other industries. The company has positioned its technology as a low-carbon alternative to conventional fertilizer production, claiming lower energy use and reduced emissions.