Sweden: A Restructuring/Insolvency: Trustees/Administrators Overview

In recent years, Sweden has seen a clear increase in large companies initiating restructuring and bankruptcy proceedings. This trend highlights the growing complexity of financial stress in a challenging macroeconomic environment, where companies face rising operating costs, global volatility, and the delayed financial effects of COVID-19-related support measures. After some improvement in the Swedish economy during 2025, recent global developments have dampened expectations of lower interest rates and general market stabilisation. The level of financially distressed companies is expected to remain high going forward, but many in the market believe that the peak of formal insolvency proceedings may now have passed. However, a still unknown is how much the expected energy crisis following the war against Iran will affect inflation and, worst case, whether a second wave or an even deeper recession may be imminent.

Court decisions have positively contributed to predictability in the relatively new Reconstruction Act. The law has established itself as a crucial tool for larger companies with complex capital structures. The modernised framework offers more flexible and efficient restructuring options compared to previous legislation, making it possible for companies to manage financial instability through court-supervised restructuring rather than moving directly to bankruptcy.

Over the past year, since Northolt AB was declared bankrupt, no other major Swedish companies have carried out foreign restructuring proceedings such as US Chapter 11. The failure to resolve Northvolt AB’s situation through Chapter 11 has likely reduced appetite for using Chapter 11, particularly considering the extensive media coverage of advisory fees and the lack of a viability test in the US process.

In the wake of major bankruptcies in recent years, numerous clawback litigations have been initiated. The bankruptcy trustees of Serneke Sverige AB have received significant media and industry attention after initiating clawback claims totalling SEK3 billion against around 200 different defendants regarding payments for ongoing work for many years before the date of the bankruptcy. The completion of the sale of IAC’s bankruptcy estate to Tata and the sale of assets in Northvolt AB to Lyten have also received substantial media attention. The market is also closely monitoring developments related to the green steel producer Stegra.

Geopolitical Factors

Continued geopolitical tensions, rising energy prices, and inflation are expected to negatively affect large parts of Swedish consumer-focused industries. In the 2026 statistics, car dealerships stand out as particularly affected. Other sectors directly impacted are those with high exposure to energy prices, such as heavy industry and transportation, but also companies that for various reasons have financial exposure to high energy prices. Tariffs or export restrictions are expected to continue causing significant disruptions for exporting companies, and prevailing uncertainty may delay investments and increase the risk of financial restructuring.

Specific Factors for the Swedish Market

One of the most significant drivers of financial stress in recent years, aside from global conditions, has been the repayment of tax deferrals granted during the COVID-19 period. Many companies have undergone restructurings with substantial write-downs of these tax deferrals. Of the total SEK87 billion in deferrals granted, approximately SEK14 billion remains in 2026 allocated across 11,700 companies (approximately SEK12 billion is expected to be final losses through bankruptcies and debt settlements in restructurings). The number of bankruptcies in 2025 has been in line with the high levels of 2024 and affected roughly the same number of employees (just over 25,000). However, preliminary statistics indicate that the number of initiated restructurings halved in 2025 compared to 2024.

Upcoming Legal Reforms

Work on harmonisation within the EU regarding pre-packs, transfer of contracts in bankruptcy, and grounds for clawback continues and is expected to significantly impact Swedish bankruptcy law once implemented. The harmonisation will create new and welcome tools for managing cross-border co-operation, particularly for international investors and creditors. The expectation is that the directive will be adopted in 2026 with an implementation period of two years and nine months.

During the year, several smaller but meaningful reforms in the bankruptcy area have been enacted, all aiming to transfer responsibilities from the courts to the Swedish Enforcement Authority and bankruptcy trustees.

Significant Activity Among Law Firms

A number of Swedish law firms remain highly active in complex restructuring and insolvency matters and often act as reconstruction administrators, bankruptcy trustees, or advisers in major proceedings. Regarding major market changes, one of the leading Norwegian law firms, BAHR, has established itself in Sweden but is not expected to take roles as trustees or reconstruction administrators. A significant number of partners and lawyers from Schjødt in Sweden and Norway have moved to BAHR in connection with the Swedish launch, but Schjødt in Sweden retains its insolvency and restructuring department intact.

Recent assignments regarding formal roles as reconstruction administrators and bankruptcy trustees include the following:

• CIRIO: Cirio’s restructuring team has been appointed as reconstruction administrators in several major cases under the new Reconstruction Act, such as MatHem, Leo’s Lekland, OfficeDepot, NAKD, Kvalitena, and Brödernas. The firm has also acted as bankruptcy trustee in major cases such as Life, Renewcell AB, Teknikmagasinet SWE AB, Sun4Energy, tretton37 AB, Petroswede AB and Ellos AB. The team also works with both debtor and creditor representation in litigation and advisory work in distressed M&A transactions, and has, among other things, represented Tata in the purchase of IAC’s bankruptcy estate.
• Carler has been reconstruction administrator in several notable cases, including the airline BRA. Carler has also been bankruptcy trustee in a number of cases, including parts of Intergiro Intl AB (publ) and the Brödernas group.
• DLA Piper has been appointed bankruptcy trustee for Northvolt Expansion AB, one of the most significant assignments in 2024, which is still ongoing, and Prale Profil AB during 2025. The firm is also trustee in many bankruptcies involving Oscar Properties and The Body Shop Svenska AB. The restructuring team is also engaged on the creditor side in several major restructurings.
• Fylgia has recently been reconstruction administrator for Convendum AB and bankruptcy trustee for Xshore Production AB, VCV Trucks AB, Taverna Brillo, Cake 0 Emission AB, and Luthman Nordic AB.
• Schjødt has had several prominent assignments as bankruptcy trustee, including at Mackmyra, Brothers, Sätra Centrum Fastigheter AB, Payer Financial Services AB, Gotogagruppen, and Cura of Sweden AB. They have also served as reconstruction administrators in the BRA airline and Libergs Sweden AB cases, and continue to represent both creditors and debtors in significant restructuring matters and in litigation.
• CMS Wistrand: Following the firm’s integration into CMS in 2024, Wistrand has continued to play an active role, and acted as bankruptcy trustee in the cases Kvalitena AB (publ), Serneke Sverige AB, and paceM2 For Smart Living AB. The restructuring team is also engaged on the creditor side in several major restructurings.