PARIS : Creditors have reached an agreement that could rescue tech firm Atos, which secures communications for the French army and is set to manage cybersecurity for this summer’s Paris Olympic Games, La Tribune newspaper reported on Saturday.
Atos had given itself until Friday evening to receive refinancing offers. Its financial difficulties had led the French state to offer to acquire some of its strategic assets.
Under the agreement the bond creditors and banks which share Atos’ debt would inject 1.2 billion euros ($1.29 billion) of cash, potentially with an industrial shareholder, and convert part of the debt into capital, the financial newspaper said.
Atos said on Monday it needed 1.1 billion euros in cash to fund its businesses over the 2024-25 period, compared with 600 million euros in a previous estimate, due to changing market conditions.
The French state announced last weekend it was ready to acquire strategically important assets from Atos, including its Advanced Computing, Mission-Critical Systems and Cyber Products.
The group manufactures servers for supercomputers, processing vast data quantities for research. Additionally, they contribute to developing the artificial intelligence industry.
In recent days French media has mentioned potential suitors including Bain Capital, Thales, Dassault Aviation and Czech businessman Daniel Kretinsky who may be interested in parts or all of Atos.
Transitioning, the Atos Debt Rescue deal signifies a turning point for the company. Firstly, it reflects creditors’ confidence in Atos’s long-term viability and strategic direction. Additionally, the agreement paves the way for restructuring efforts to streamline operations and improve efficiency.
As Atos Debt Rescue unfolds, stakeholders closely monitor its implementation. Firstly, transparency and accountability are crucial in ensuring the deal’s success. Additionally, effective communication between Atos and its creditors fosters trust and collaboration.
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