The company aims to open an accelerated safeguard proceeding, which allows it to cram down dissenting creditors
A MAJORITY of creditors of Atos have signed the lock-up agreement that will see them take control of the embattled French IT services provider following its restructuring, said a statement on Monday (Jul 15).
The company has also secured 1.7 billion euros (S$2.5 billion) of new financing from existing creditors, in the upper range of what was announced on Jun 30.
As part of the plan, bondholders and lenders have agreed to convert 2.9 billion euros of loans and bonds into equity and to inject 233 million euros in new equity – either themselves or alongside a private industrial investor.
Creditors that have not yet signed the agreement will have until Jul 22 to do so.
That week, Atos aims to ask a commercial court to open an accelerated safeguard proceeding – a French restructuring process to get the plan approved by a court.
The move would allow the company to cram down dissenting creditors, if needed, to implement the restructuring plan.
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Proceeds from the potential disposals of its nuclear energy subsidiary Worldgrid and its data and security unit BDS will be used to repay the debt, if the forecast cash balance of the company at the end of 2026 is at least 1.1 billion euros.
Otherwise, Atos will be allowed to keep part of those proceeds to maintain its cash position.
Atos chief executive officer Paul Saleh said the company is in touch with its customers and has reassured them that its refinancing is already settled. BLOOMBERG
