WISI secures debtor-in-possession time to restructure from court

Broadband and TV technology company WISI has entered the German equivalent of Chapter 11 proceedings to give it space to restructure after what it characterized as a “significant decline in orders” affecting the broadband segment. 

A local court in Pforzheim, Baden-Wurttemberg, granted the company’s application to
initiate debtor-in-possession restructuring proceedings.

WISI said that business operations will continue during the reorganisation process, with employees’ salaries secured by state insolvency benefits.

Other companies of the WISI Group and their employees are not affected.

According to the company, its application for reorganisation under debtor-in-possession management was unavoidable due to what it said was a drastic slump in incoming orders, particularly in the area of network equipment for broadband networks.

WISI had already been under strain because of a lack of availability, and a massive increase in the cost of, electronic components and a loss of business with Russia, Ukraine and other Eastern European countries following Russia’s invasion of Ukraine.

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

The Pforzheim Local Court granted WISI’s application for self-administration proceedings and appointed lawyer Marc-Philippe Hornung from the law firm Schilling, Zutt & Anschütz as provisional administrator.

The company’s management is working to implement reorganisation measures together with restructuring experts from the law firm Luther (Gunnar Müller-Henneberg, Salvatore Calcagno and Hannah-Laura Schütte).
WISI’s approximately 260 employees were informed about the initiation of the proceedings and the next steps in a staff meeting at the Niefern-Öschelbronn site.

The company’s management have expressed confidence that WISI can continue to operatein the long term.

Managing partner Axel Sihn said: “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.