The Struggling French IT Company Atos Has Reached an Agreement with a Group of Banks and Bondholders on the Terms of Its Financial Restructuring. This Step Aims to Stabilize the Company's Financial Situation.
The agreement provides for a capital injection of 233 million euros (249.7 million dollars) as well as the issuance of debt instruments worth 1.5 to 1.675 billion euros. Additionally, a total of 2.9 billion euros in debt will be converted into equity, Atos announced on Sunday.
This agreement follows failed rescue talks between Atos and a consortium, which included shareholder Onepoint, that fell through at the end of last month. This had further exacerbated the company's already difficult situation.
Atos stated that the restructuring plan aims to reduce debt by approximately 3.1 billion euros and ensure a minimum liquidity of 1.1 billion euros by the end of December 2026. The company added that existing shareholders could participate in the proposed capital increase.
Atos expects that the final restructuring agreement will be implemented later this month. The restructuring measures are to begin in the second half of 2024 and be completed by the first quarter of 2025 at the latest.
