Panic in Germany as huge construction company plunges into administration | World | News
A European construction equipment manufacturer has entered administration amid continued weakness in the machinery market. German loader crane and excavator maker Atlas has filed for administration at the Delmenhorst District Court, after the insolvency court ordered preliminary self-administration proceedings last Friday.
Despite the move, the company said operations will continue as normal, including production, spare parts supply and customer support. Other businesses within the group – Atlas Spare Parts, Atlas FF, Atlas Group Services and Atlas Kompakt – are also facing insolvency proceedings, with applications for self-administration submitted on their behalf.
Self-administration in Germany is granted only where there is a realistic prospect of restructuring and where funding for ongoing operations is secured for the duration of proceedings. Under the process, existing management retains control of the business, though it operates under the supervision of a court-appointed administrator.
To assist the management team, restructuring specialists Malte Köster and Hans-Joachim Berner from KösterBerner have been appointed as general representatives. Attorney Hendrik Gittermann of Reimer Law has been named provisional administrator by the local court. The Atlas companies involved in the proceedings employ around 400 people and generate revenues of about €150 million (£128 million).
In a statement, the company said the crisis stemmed from «a prolonged, industry-wide market weakness in the construction machinery market», which resulted in «a significant decline in orders and lower capacity utilisation».
It added that extensive restructuring measures had already been introduced and that shareholders had provided liquidity support. However, «despite these efforts, liquidity shortages could not be resolved», the company admitted, warning that «ultimately, some disruption cannot be completely avoided».
Atlas said the self-administration process now provides the legal framework to implement the restructuring already underway. Employees have been informed of the next steps, with wages and salaries secured through insolvency benefits until the end of April 2026, Vertikal.net reported.
Mr Köster said the manufacturer remains fundamentally strong, describing Atlas as «operationally efficient».
He said: «Atlas is operationally efficient and has a strong brand. The administration proceedings now create the legal framework to consistently implement the restructuring and sustainably stabilise the company. Our goal is to develop viable prospects together with all stakeholders.»
The company also plans to launch a structured international investor process as it seeks to secure the long-term future of the business.
