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At CE Interim, we work alongside some of the most experienced restructuring professionals across Europe. In Sweden, the landscape changed significantly in 2022 with the arrival of the new Swedish Reconstruction Act.

To explore how this law works in real-world recovery scenarios, we revisit an insightful interview between Curt Holmertz, Interim CFO and Restructuring Executive, and Björn Henriksson, Group CEO of Valtus.

They discuss what the new law means in practice, how interim leaders contribute to successful turnaround, and why cashflow forecasting, creditor relations, and proactive strategy are more important than ever.

Björn: What makes the legal framework for restructuring in Sweden unique?

Curt:

The new Swedish Reconstruction Act, introduced in 2022, was designed to align with the EU’s Restructuring and Insolvency Directive. It provides a broader restructuring toolbox but also includes tighter legal requirements.

The goal is to support financially distressed yet viable companies by giving them a real chance to recover before insolvency becomes inevitable.

I’ve been involved in several reconstructions under this law, usually in the role of Chief Restructuring Officer (CRO). While I’m not a legal expert, my job is to support the company and work closely with the court-appointed administrator to make the plan operational.

Björn: Are there specific reports or documentation required when insolvency risk is near?

Curt:

Yes. To file for reconstruction, the company must prepare a draft restructuring plan that shows how the business can be restored to long-term viability. The plan must be realistic, financially sound, and include a proposed administrator who consents to support the application. Without this groundwork, the court won’t approve the case.

Björn: What mistakes do companies make early in a liquidity crisis?

Curt:

Emotion often takes over. Boards delay difficult decisions, hoping for an investor, a contract win, or a capital injection to fix things. By the time they seek help, they’re often out of options.

Companies need to act proactively, not reactively. Waiting too long limits the tools available and increases the risk of failure. One of the first things I do as CRO is get everyone aligned around the idea that they’re already late — and that urgency must guide the next steps.

Björn: When should an external expert like a CRO be brought in?

Curt:

Ideally, before applying to court. The CRO should help shape the restructuring plan and guide the company through execution. They report both to the board and the court-appointed administrator.

The role is highly operational. The CRO must work closely with the CEO and CFO, but also be able to challenge ownership and support decision-making across the business. Often, we find internal teams are already stretched.

One of the CRO’s early tasks is to assess whether the company has the capacity to deliver the plan while running daily operations.

In my view, a seasoned CFO or COO with experience in formal reconstructions is ideal for this role.

Björn: Does Sweden have protective shield tools like other countries?

Curt:

The 2022 act is a form of protective shield. It gives the company breathing room from creditors while restructuring takes place. However, this protection works both ways — if the company acts unfairly toward one creditor, the administrator can end the process.

That’s why governance, transparency, and proper cash controls are vital. The CRO plays a central role in keeping creditor relations balanced and protecting the process from collapse.

Björn: What happens to employee wages during a reconstruction?

Curt:

Employees are protected under the state wage guarantee (lönegaranti) for wages accrued prior to the court’s approval. However, this only covers up to around 21,000 EUR.

For ongoing work during the reconstruction, the company must prove it can pay salaries. The restructuring plan must reflect this. Any unpaid amounts beyond the guarantee become unsecured debt included in the wider restructuring.

Björn: How do interim executives protect their own fees?

Curt:

Interim executives, including CROs, typically arrange bi-weekly payments in advance, and these terms are usually approved by the administrator. If you’re acting as the CRO under court supervision, your fees are treated as restructuring costs, which gives a certain degree of protection.

Björn: Could you share a recent turnaround case?

Curt:

I supported an online FMCG group that was one of the first to apply under the new law. We used several new tools — including cram-downs, early termination of contracts, and a super-priority bridge loan — to stabilize operations.

Within months, we regained control of the cash position and positioned the business for recovery. It was a valuable proof of how powerful the new framework can be when used properly.

Björn: What are the most critical success factors under this new act?

Curt:

A few things stand out:

• Owner contribution matters. Without cash or asset input from the owner, creditors will rarely accept a write-down.

• Collaboration between management, board, and ownership is vital. No blame games — just aligned action.

• Cashflow is everything. Forecasting and daily monitoring are make-or-break.

The toolkit allows flexible, tailored plans. But someone needs to understand the tools and make them work in practice.

Björn: How effective is collaboration between creditors, courts, and management?

Curt:

Generally quite effective, especially when relationship banks are involved. They’re often partners in the process, but naturally compare restructuring offers to bankruptcy outcomes. A strong plan with well-managed creditor communications helps bridge that gap.

Björn: And for foreign companies with subsidiaries in Sweden?

Curt:

Local presence is a must. Remote steering doesn’t work in a restructuring. An interim CRO based in Sweden can lead diagnostics, coordinate stakeholders, and manage the plan hands-on. Understanding the local legal and cultural landscape is critical.

⚙️ Thinking of a Restructuring in Sweden?

Whether you’re a local business or an international company with operations in Sweden, CE Interim can deploy trusted interim leaders — from CROs to restructuring-savvy CFOs — within 72 hours. Learn more about our services here:
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