Atos saved by agreement between creditors and banks

Atos’ bondholders and banks have come to an agreement to rescue the struggling IT group themselves, potentially bringing an end to 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.

The announcement from Atos management signals 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, the agreement reached is expected to provide much-needed financial stability and a path to recovery.

The recent decision by entrepreneur David Layani (Onepoint) to abandon the Atos rescue effort marked a significant turning point in the group’s journey. The deal is aimed at lifting Atos out of financial distress, achieving a “BB” credit rating by 2026, and ensuring a minimum liquidity amount of €1.1 billion until the end of 2026.