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Sweden’s drone maker files for bankruptcy

Swedish drone-maker CybAero has filed for bankruptcy, following its failed attempt to seal a deal with China for unmanned aerial systems.

Sweden’s largest military drone maker CybAero’s board opted to file bankruptcy papers with Linköpings District Court after the Nasdaq First North stock exchange in Stockholm halted all trading in the company’s shares on June 15. The Exchange said it was troubled by CybAero’s uncertain financial position.

CybAero had invested heavily to break into the Asian market. The company’s economic fortune began to diminish after Sweden’s Inspectorate of Strategic Products, or ISP, reversed a decision to grant CybAero clearance to export an unmanned helicopter system demonstrator to China.

The ISP cited “foreign and security policy” for its decision.

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