Atos let a third party help with refinancing its outstanding debts. At issue is a debt load of more than two billion euros, for which the deadline for repayment is rapidly approaching.
Earlier today, Atos announced it is in talks with several banks for a possible refinancing of the company’s outstanding debts. A third party is said to be involved in the negotiations to support the talks. The third party and thus mediator was appointed by the court on the request of Atos after it cancelled a planned €720 million rights issue. The French IT company hopes to complete the refinancing with the intermediary soon.
The company says it will provide updates on the talks with the banks, the refinancing plans, the pending sales of the company’s business units and “the possible changes in the capital structure that could result in a dilution of the equity stake”. That means Atos would issue additional shares. The news already caused a big drop in the value of existing shares. This dropped to 2.75 euros per share, the lowest value since June 2022.
Restructuring plans are not flowing
Earlier this year, Yves Bernaert resigned from his role as CEO. The reason for this departure is a disagreement over the restructuring of the company and the vision which led the company in the past several years. The IT company tried to reduce Bernaert’s departure to a ‘restructuring of management’.
In general, the plans surround the sale of various business units of the company. For example, the company is in talks with Airbus about a possible sale of its cybersecurity division. Negotiations with the investment fund EPEI about the Tech Foundations business unit are also ongoing.
The sale of these parts would be part of the solution for paying off debts. Since the negotiations seem to be taking a long time as the deadline for repayment of outstanding debts approaches, the company is now trying to find a salvation in refinancing talks.
Also read: Atos CEO Yves Bernaert resigns immediately over disagreement