Atos reaches debt restructuring agreement

French technology firm Atos (ATOS.PA) said on Sunday that it agreed with many banks and bondholders on terms for its debt restructuring.

Agreement Details

French technology company Atos (ATOS.PA) announced on Sunday that it has reached an agreement with a consortium of banks and bondholders regarding the terms of its debt restructuring.

The restructuring plan includes a 233-million-euro ($250 million) capital increase with preferential subscription rights.

Additionally, approximately 2.8 billion euros of Atos’ debt will be converted into equity, bringing the total converted debt to 2.9 billion euros. This conversion will significantly reduce Atos’ net indebtedness by around 3.1 billion euros.

Significant Milestone

Atos described the agreement as a “significant milestone towards reaching a final restructuring agreement by July.” This step is crucial in the company’s ongoing efforts to stabilize its financial position and secure a sustainable future.

Challenges and Changes

The announcement follows a setback last Wednesday when a consortium led by investor David Layani’s Onepoint withdrew from discussions on Atos’ restructuring. Despite this challenge, the company has continued to work towards a viable restructuring plan.

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Moving Forward

Atos’ agreement with its banks and bondholders marks a critical step in the company’s journey towards financial recovery.

By reducing its debt significantly, Atos aims to enhance its financial stability and pave the way for future growth and development.

The finalization of this restructuring agreement is anticipated by July, which will provide further clarity on the company’s financial strategy and future direction.