Atos Extends Restructuring Negotiations Following Collapse of Airbus Deal

Atos SE is facing a daunting challenge as it works to stave off a looming repayment crisis. The French IT company has set a deadline of the week of April 8 to present creditors with a refinancing framework in an effort to secure a comprehensive agreement on its debt by July.

In a statement released on Tuesday, Atos revealed that it has expanded its restructuring talks to include bondholders as it grapples with €3.65 billion ($3.96 billion) of debt due by the end of 2025. The company’s difficulties were exacerbated after it failed to secure funds to address its debt obligations. Talks to sell its legacy IT services unit and big data and cybersecurity business also ended without a deal.

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Despite the challenges, Atos CEO Paul Saleh expressed confidence in finding a global solution with all creditors on board by July. However, the company’s bond prices dropped significantly on Tuesday, reflecting growing concerns among investors.

Atos assured that it has adequate liquidity to continue operations until a refinancing plan is finalized. The company is engaged in discussions with creditors regarding interim financing to provide more time to find a permanent fix.

The road ahead for Atos includes significant debt repayments through 2025, including a convertible bond due in November, a €750 million bond maturing in May 2025, and €2.4 billion of bank debt due next year.

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As Atos navigates through its financial challenges, the French government is actively involved in negotiations to safeguard the company’s strategic interests. Various strategic alternatives are being evaluated, and there may be potential interest from parties like David Layani and Daniel Kretinsky.

Atos’s journey to financial stability is complex and challenging, but the company remains committed to finding a viable solution for its debt woes. Stay tuned for more updates on this evolving situation.

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