Atos secures $1.82 billion in funding to restructure its debt

Atos, once a beacon of promise in France’s tech industry, announced on Monday that it has secured €1.675 billion ($1.82 billion) in funding to restructure its debt. This lifeline comes through a lock-up agreement with a coalition of banks and bondholders representing over 50% of its creditors.

This funding news follows a Bloomberg report from three months ago, which revealed Atos’s efforts to raise €1.2 billion in equity and debt to engineer a turnaround. The company’s strategy aims to slash its debt by €2.4 billion by 2026 while extending the maturities of its remaining obligations by five years, Bloomberg reported.

Atos has given its remaining creditors until July 22 to join the agreement. Its shares jumped approximately 10% to €1.17 per share during early trading in Paris. Facing a wall of debt, the beleaguered French IT company has run out of options for bringing it down.

In addition to the restructuring funds, Atos secured interim financing of €800 million, with €450 million immediately available to sustain operations until the restructuring plan is finalized. The company emphasized that the banks and bondholders involved do not plan to act in concert, ensuring Atos remains “not controlled” post-restructuring.

“The Board of Directors will continue to have a majority of independent directors, and certain creditors will be granted the right to propose the appointment of members and/or observers,” the company stated.

The new governance structure will be unveiled following the conclusion of the restructuring, anticipated by late 2024 or early 2025, Reuters reported.

Founded in 1997 through the merger of French IT firms Axime and Sligos, Atos expanded significantly in 2002 by acquiring KPMG Consulting’s U.K. and Netherlands businesses. Over the years, Atos has grown into a global IT solutions powerhouse, bolstered by a series of strategic acquisitions.