A European construction equipmentmanufacturer has entered administrationamid continued weakness in the machinery market.German loader craneand 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-administrationin 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.
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To assist the management team,restructuring specialistsMalte 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.netreported.
Mr Köster said the manufacturer remains fundamentally strong, describing Atlas as "operationally efficient".
Source: Daily Express :: World Feed
