Atos Averts Crisis with Bondholders’ Rescue Deal, Securing Future as Major Tech Provider”.

The struggling IT group Atos has reached an agreement with its bondholders and banks to rescue the company, potentially ending a turbulent saga. The deal includes a capital increase of €233 million, a contribution of €1.5 to €1.675 billion, and a debt reduction of €3.1 billion. This agreement comes after the consortium led by Onepoint, Atos’ largest shareholder, backed out of the planned takeover.

Atos’ management has signaled a hopeful resolution to the crisis that the group has faced recently. With about 100,000 employees in 69 countries, Atos is a key technology provider for the Paris Games this summer. The group aims to launch operations at the beginning of July, prior to the Olympic Games, with further restructuring operations planned for completion by the end of 2024 or the first quarter of 2025.

Under the agreement, banks and bondholders will become majority shareholders, holding up to 99.9% of the capital. Current shareholders have the option to participate in the capital increase to avoid dilution, potentially securing up to 25.9% of the capital. Once a prominent figure in French IT, Atos had accumulated massive debts and faced an uncertain future. However, this agreement is expected to provide much-needed financial stability and a path to recovery for Atos.

The recent decision by entrepreneur David Layani (Onepoint) to abandon his rescue effort marked a significant turning point in Atos’ journey towards recovery.

The deal is aimed at lifting Atos out of financial distress and achieving a “BB” credit rating by 2026 while ensuring a minimum liquidity amount of €1.1 billion until the end of 2026.

In conclusion, this deal marks a significant milestone for Atos as it aims to overcome its financial struggles and secure its future in the technology industry while continuing its mission as one of France’s leading technology providers for major events such as Olympic Games.