WISI Communications initiates restructuring in self-administration

Significant decline in orders: WISI Communications GmbH & Co. KG initiates restructuring in self-administration.

NIEFERN-ÖSCHELBRONN — The Pforzheim Local Court today granted the company’s application to initiate debtor-in-possession restructuring proceedings.

• Business operations will continue in full during the reorganisation process
• Employees’ salaries are secured by state insolvency benefits
• WISI Communications will remain a reliable partner for customers and suppliers
• The other companies of the WISI Group and their employees are not affected

The application for reorganisation under debtor-in-possession management was unavoidable primarily due to the current drastic slump in incoming orders, particularly in the area of network equipment for broadband networks. In previous years, a lack of availability and a massive increase in the cost of electronic components and the loss of business with Russia, Ukraine and other Eastern European countries had already put a strain on the company’s assets.

Self-administration is a court-ordered reorganisation procedure in which the necessary restructuring measures are to be developed swiftly while business operations continue in order to create long-term prospects for the company and all those involved. Self-administration proceedings are only authorised if the company has a chance of sustainable restructuring. The Pforzheim Local Court granted the application and appointed lawyer Marc-Philippe Hornung from the law firm Schilling, Zutt & Anschütz as provisional administrator.

The management remains fully capable of acting in the event of a reorganisation in self-administration in order to be able to implement the reorganisation measures initiated together with the experienced restructuring experts from the law firm LUTHER (Gunnar Müller-Henneberg, Salvatore Calcagno and Hannah-Laura Schütte). The focus here is on the stable continuation of business operations.

The approximately 260 employees were informed about the initiation of the proceedings and the next steps in a staff meeting at the Niefern-Öschelbronn site. Wages and salaries are secured for the next few months by the insolvency substitute benefits from the labour agency. The management of WISI Communications regrets the necessity of these measures. The aim of the reorganisation process is to take into account the interests of all parties involved as comprehensively as possible.

The management is confident that the company can be continued in the long term. Managing partner Axel Sihn emphasises: “WISI Communications will continue to guarantee quality, innovative solutions and first-class service in the future – we will remain a reliable partner for our customers and suppliers.