DB Cargo Enters New Restructuring Phase and Appoints Seitz

Law firm Seitz represented DB Cargo in relation to the forthcoming restructuring, and DB Cargo's in-house legal department assisted the company internally. The transaction concerns a comprehensive restructuring of DB Cargo after years of losses. The freight subsidiary has recorded deficits since 2015, peaking in 2020 with a €728 million loss and a forecasted shortfall of €96 million for 2025. Under pressure from the European Commission, which deemed years of cross-subsidisation by the parent company an unlawful state aid, DB Cargo must be restructured to return to profitability by 2026 or face potential break-up. Amid these constraints, the supervisory board replaced former CEO Dr. Sigrid Nikutta and appointed Bernhard Osburg in mid-November to lead the turnaround. Within a month of Osburg's appointment, an important step in the recovery planning was achieved: the independent assessor Oliver Wyman deemed the restructuring concept, to which Osburg contributed, fundamentally viable. The plan is to be finalised after a further review by the assessor by the end of February 2026. Details of the measures remain limited; it is unclear whether the previously announced reduction of roughly 5,000 positions through 2028 will remain unchanged. In-house HR and labour counsel continue to support operational personnel management during the process. Law firm Seitz represented DB Cargo with a team composed by: Name partner Seitz — lead partner, specialising in large-scale restructurings and turnaround matters. DB Cargo in-house legal department represented DB Cargo with a team composed by: Labour Director Fuchs — Labour Director (since March 2023), previously head of HR Business Partner Rail Logistics and responsible for international and national operational personnel management across DB Cargo and its subsidiaries.

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DB Cargo Enters New Restructuring Phase and Appoints Seitz

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DB Cargo Enters New Restructuring Phase and Appoints Seitz

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