The German investment group Mutares SE & Co. $MUX (+0%) announced that its portfolio company Serneke Sverige AB in Sweden has filed for bankruptcy, marking the latest collapse of a construction company in the largest Nordic country.

The filing with the Gothenburg District Court follows a "drastic financial deterioration in the second half of 2024", according to a statement on Wednesday.

The purchase of the Swedish construction and real estate company from Serneke Group AB had been agreed in July last year and was completed in November. Mutares said the bankruptcy filing has "no significant impact" on its operations or its other portfolio companies.

In 2023, Serneke Group was acquired by Doxa AB $DOXA whose share price plunged 50% in Stockholm on Tuesday, although some of the losses were recovered on Wednesday.

Doxa said in a separate statement that its involvement in the insolvent unit is limited to performance guarantees related to certain construction projects. Doxa estimates that its earnings will be negatively impacted by about 150 million crowns (13.4 million dollars).