Panic in Germany as huge construction company plunges into administration | World | News
A European construction equipment manufacturer has gone into administration amid continued weakness in the machinery market. German loader crane and excavator manufacturer Atlas filed an application for administration with the Delmenhorst District Court after the bankruptcy court decided on preliminary self-administration proceedings last Friday.
Despite the move, operations, including production, spare parts supply and customer support, will continue as normal, the company said. Other businesses within the group (Atlas Spare Parts, Atlas FF, Atlas Group Services and Atlas Kompakt) are also facing insolvency proceedings with self-administration applications being made on their behalf.
In Germany, self-management is granted only where there is a realistic possibility of restructuring and funding is provided for ongoing operations during the duration of the case. Under the process, current management retains control of the business although it operates under the supervision of a court-appointed administrator.
To assist the management team, Hans-Joachim Berner from restructuring experts Malte Köster and KösterBerner was appointed as general representative. Lawyer Hendrik Gittermann from Reimer Law Firm was appointed by the local court as interim administrator. The Atlas companies involved in the case employ around 400 people and generate revenues of around €150 million (£128 million).
In a statement, the company said the crisis was caused by “prolonged, industry-wide market weakness in the construction machinery market”, which led to “a significant decline in orders and lower capacity utilization”.
He added that comprehensive restructuring measures have already been implemented and shareholders are providing liquidity support. However, the company admitted that “despite these efforts, the liquidity problem could not be solved” and warned that “some disruptions cannot be completely prevented”.
Atlas said the self-governance process now provides the legal framework for implementing the restructuring that is already underway. Employees have been informed about next steps, with wages and salaries secured through bankruptcy benefits until the end of April 2026, Vertikal.net reported.
Mr. Köster described Atlas as “operationally efficient” and said the manufacturer remained fundamentally strong.
He said: “Atlas is operationally efficient and has a strong brand. Administrative proceedings now establish the legal framework to consistently implement the restructuring and stabilize the company in a sustainable way. Our aim is to develop liveable prospects with all stakeholders.”
The company also plans to launch a structured international investor process to secure the long-term future of the business.
