Atos, a struggling IT group, has reached an agreement with its bondholders and banks to rescue the company themselves. The deal includes a capital increase of €233 million, a contribution of €1.5 to €1.675 billion, and a debt reduction of €3.1 billion. This comes after Onepoint, Atos’ largest shareholder and consortium leader, backed out of the planned takeover.
Atos is a key technology provider for the Paris Games this summer and aims to launch operations at the beginning of July, prior to the Olympic Games, with further restructuring operations planned for completion by the end of 2024 or the first quarter of 2025. Under the agreement, banks and bondholders will become majority shareholders, holding up to 99.9% of the capital. Current shareholders have the option to participate in the capital increase to avoid dilution, potentially securing up to 25.9% of the capital.
The recent decision by entrepreneur David Layani (Onepoint) to abandon the Atos rescue effort marked a significant turning point in the group’s journey. The deal is aimed at lifting Atos out of financial distress, achieving a “BB” credit rating by 2026, and ensuring a minimum liquidity amount of €1.1 billion until the end of 2026.
The agreement reached between Atos’ bondholders and banks signals hopeful resolution to crisis faced recently by group with about 100 thousand employees in 69 countries. With this agreement Atos is expected to provide much-needed financial stability and path towards recovery.
In conclusion, this agreement reached between banks and bondholders will allow Atos to overcome its current financial difficulties and secure its future as one of France’s leading technology providers for major events such as Olympics Games this year in Paris..
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