Lessebo-based Vida Paper AB, part of the Swedish Vida AB group, is insolvent. The insolvency proceedings were opened at a court in Växjo on 12 December. The court appointed Bertil Stridh as insolvency administrator.
The continuation of operations at Vida Paper was assured until 12 January and talks with the banks were currently underway to extend this deadline until the end of February, insolvency administrator Stridh told EUWID. A possible sale of Vida Paper is also being discussed in Lessebo. There had been some expressions of interest from various investors from the pulp and paper industry, Stridh said. The first meeting with one of the investors was scheduled for 21 December, he added.
Vida Paper has been in a restructuring process under Swedish insolvency law since 6 November and has been working since then on creating a restructuring plan. The introduction of the restructuring process about six weeks ago was necessary after the company’s financing banks terminated all of its existing loans and credit with immediate effect. Attempts by Vida to raise additional funds through the sale of property were unsuccessful.
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