Risk of insolvency: Electrical companies are facing drastic upheaval!

On February 4, 2025, an electrical company applied for bankruptcy, as reported by the Credit Protection Association (KSV). The application was submitted by the company owner and concerns liabilities of 3.7 million euros. The company's difficulties began during the COV pandemic, which led to project-related delays and financial problems. Another decisive factor is disputes with a major customer with regard to the outstanding payments that further tighten the situation.

The examination of the insolvency court as to whether the prerequisites for a renovation procedure are met is still pending. According to Haufe Power of disposal by the applicant transferred to the insolvency administrator. The latter has the obligation to secure the bankruptcy estate and to use it in the best possible way. The insolvency administrator must also maintain ongoing business operations if this is financially portable.

consequences of bankruptcy

The company owner strives to continue operating, but according to the creditors' protection association Creditreform, extensive renovation measures are necessary. This includes a job cuts and a restructuring of the company in order to stabilize the economic situation. There could also be an external partner to improve the financial means. However, the mass manager must clarify the question of whether the company continued without considerable disadvantages for the creditors.

The immediate legal consequences of the opening of the bankruptcy include the ineffectiveness of orders that the heir applies after the application. Such measures are available to the insolvency mass in accordance with Section 81 InsO, which gives the insolvency administrator the right to reclaim property. This illustrates how critically the situation of the company and how important a rapid clarification of the financial situation and the continuation perspectives is.