French IT company Atos has successfully secured $1.82 billion in funding to restructure its debt. This financial maneuver is part of a lock-up agreement with a group of banks and bondholders, representing over 50% of its creditors. The restructuring is expected to conclude by the end of 2024 or early 2025.
Key Takeaways
- Atos secures $1.82 billion in funding to restructure its debt.
- The agreement involves more than 50% of its creditors.
- Interim financing of 800 million euros has been secured, with 450 million euros already accessible.
- The company will remain "not controlled" post-restructuring.
- New governance to be announced by the end of 2024 or early 2025.
Funding Details
Atos announced on Monday that it had secured 1.675 billion euros ($1.82 billion) through a lock-up agreement with a consortium of banks and bondholders. This agreement includes more than half of its creditors, with the remaining creditors having the option to join the agreement until July 22.
Interim Financing
In addition to the primary funding, Atos has also secured interim financing of 800 million euros. Out of this, 450 million euros is already accessible, providing the company with the necessary liquidity to continue its operations until the financial restructuring is completed.
Governance and Control
The banks and bondholders involved in the agreement have stated that they do not intend to act in concert, ensuring that Atos will remain "not controlled" after the restructuring. The Board of Directors will continue to be composed of a majority of independent directors. Certain creditors will have the right to propose the appointment of members and/or observers.
Future Governance
The new governance structure of Atos will be announced after the completion of the restructuring, which is expected to be finalized by the end of 2024 or at the beginning of 2025. This new governance will aim to steer the company towards a more stable financial future.
