Atos, a French IT group, is facing significant challenges with high debts and is seeking to raise 1.2 billion euros. The group has announced its plans to convert almost half of the debt into shares on Tuesday before the opening of the Paris stock exchange. Atos presented its refinancing plan to creditors on Monday, highlighting the need for 600 million euros in cash to finance activities in 2024-2025.
To provide interim financing, Atos has reached an agreement in principle with several banks and the French state for 450 million euros. This agreement aims to give the group breathing room to finalize a refinancing agreement by July. As part of this agreement, Atos will receive a 50 million euro loan from the French state in exchange for a “preferred share” in Bull SA, its subsidiary that handles sensitive activities. Creditors are expected to submit proposals by the end of April.
Despite its challenges, Atos plays a significant role in the upcoming Olympic Games in Paris next summer. The company has approximately 112,000 employees and is burdened with nearly 5 billion euros in debt. In 2023, it suffered a net loss of 3.4 billion euros and its stock market value declined by 80 percent in just one year.
