ICT specialist Auerswald begins restructuring as a debtor in possession – PLUTA team supporting the proceedings

ICT company Auerswald has initiated debtor-in-possession restructuring proceedings in order to position itself for the future. Management filed the relevant applications for Auerswald GmbH & Co. KG and its affiliate Auerswald Gesellschaft für Datensysteme mbH, and the Local Court of Braunschweig approved both proceedings on 29 July 2025.

The aim is to financially restructure Auerswald based on a viable realignment solution. Both companies are continuing to operate without restrictions. All points of contact remain available and all customers are being supplied as usual.

Management has already informed the 110 or so employees about the latest developments. Their salaries are guaranteed for three months thanks to specific substitute benefits provided under German insolvency law and staff will continue to receive their pay as usual. Managing director Mr Christian Auerswald emphasised, “We are positioning our group for the future. To that end, we have acted swiftly to file for debtor-in-possession insolvency so that we can preserve the Auerswald Group. Our customers and business partners can continue to rely on us – we are here for them as always, developing tailored solutions.”

Auerswald is a manufacturer of information and communications technology (ICT). The company is a one-stop shop for innovative communications technology solutions for companies of all sizes and in every industry. “This is a challenging situation for us, but we feel very confident about what lies ahead,” said Mr Christian Auerswald. “Our highly skilled and motivated team and our strong partners give us cause for optimism.”

Challenging conditions
The weak economy, the fallout from the coronavirus pandemic and the Ukraine war have all hampered Auerswald’s business performance in recent years. High energy and raw material prices, persistent supply chain disruption and the uncertainty surrounding geopolitical conflicts have led to an increased reluctance to invest among customers for its products, resulting in declining revenue. Contrary to expectations, there has also been a drop in repeat orders lately and project call-offs have been postponed. Facing a difficult financial situation on account of these various factors, the company filed for debtor-in-possession proceedings.

Debtor-in-possession proceedings are in-court restructuring proceedings to rescue and rehabilitate financially distressed companies. Management remains in charge and guides the company concerned through the proceedings itself with support from restructuring experts. Attorneys Mr Torsten Gutmann and Dr Oliver Liersch from PLUTA Rechtsanwalts GmbH are providing assistance as general agents. The local court appointed a provisional insolvency monitor for each of the proceedings, namely Mr Christian Hausherr and Mr Laars Schoppe from law firm Hausherr Steuerwald. They will support and monitor both proceedings in the interests of the creditors.

Targeted measures to be taken
PLUTA attorney Mr Torsten Gutmann said, “The company has taken this action at an early stage to safeguard its ability to act within the framework of a restructuring process and to keep the business operating. We will introduce targeted measures aimed at stabilising its earnings and revenue over the coming weeks and months.”

Despite the challenging situation, the prospects for the group’s continuation are positive given the measures planned in the short and medium term and the current market potential. Auerswald has a stable core business with predictable revenues, project orders at an advanced stage of negotiation and a restructuring concept with liquidity preservation measures. It also has a clear strategic focus on fast-growing, cutting-edge fields such as IT security and AI-driven SME solutions.