French technology company Atos has announced an extension of the deadline for the selection of its preferred financial restructuring proposal until the week of June 10. This decision was made in order to allow for further review of the terms of the proposals and to garner more support from the company’s financial creditors for their preferred proposal, as requested by the conciliator.
Atos has disclosed that it is currently engaged in advanced discussions with two parties that have submitted restructuring proposals. These proposals have been submitted by EPEI in consortium with Attestor Limited, and a consortium comprising Onepoint, Butler Industries, Econocom, and a group of Atos’ creditors. Both proposals align with the financial parameters set by Atos, including debt reduction and near-term and mid-term financing needs.
The company’s board of directors has authorised management to collaborate with financial creditors to secure maximum support for one of the proposals. However, Atos has also made it known that the implementation of either proposal will result in a substantial dilution of its existing shareholders.
Atos has faced financial challenges and significant debt in recent years, necessitating the need for a restructuring process. In 2023, the company engaged in negotiations with EPEI to sell half of its business to the private equity firm. However, the deal did not materialise due to disagreements on deal terms and pricing. The ongoing reorganization of the company is considered crucial for its future.
In addition to its restructuring efforts, Atos is also in discussions with the French government regarding the potential acquisition of its Advanced computing, mission-critical systems, and cybersecurity products activities by the state agency APE. The French government has expressed interest in acquiring these activities, which were a significant portion of Atos’ BDS division’s revenue in 2023.
Atos continues to navigate its financial challenges and is working towards achieving the best possible outcome for the company by July 2024. The deadline extension for the selection of the preferred financial restructuring proposal marks another significant development in Atos’s efforts to address its financial situation.