In brief

• A German steel construction company from Bersenbrück has filed an application for insolvency proceedings under self-administration.
• The plant is to continue production, and the management remains in charge under the supervision of a administrator appointed by the court.
• Nearly 300 jobs are at risk, and the company is looking for investors for a rescue plan.

The application has reached the court

Wurst Stahlbau from Bersenbrück, a town in Lower Saxony, has asked the court to open insolvency proceedings in the form of self-administration, known in Germany as Eigenverwaltung (Niemiecki gigant stalowy ogłosił upadłość. Prawie 300 pracowników zagrożonych – Polski Obserwator DE). The company itself announced the matter. The application will be considered by the Bersenbrück District Court.

Production is to continue despite the difficulties

The company states that, despite serious financial difficulties, it does not plan to cease operations at this stage, and production at the plant is to continue. The management will remain in charge of the company, under the supervision of a restructuring administrator appointed by the court. This model is typical for this form of proceedings.

Jobs at risk

The livelihoods of nearly 300 people depend on the future of the company. Searches for investors who could help save the business are ongoing.

What comes next

In self-administration, the entrepreneur remains responsible for the day-to-day conduct of affairs, and the goal is to prepare a restructuring plan or the sale of the enterprise. For suppliers and contractors, this means a risk of delays in payments and orders, so it is worth following the court's and management's further announcements.