Atos Escapes Insolvency through Bondholders’ Rescue Plan: Company to Avoid Dilution and Achieve Financial Stability for Paris Games

Atos, a struggling IT group that faced an uncertain future, has reached an agreement with bondholders and banks to rescue the company themselves. 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 recent decision by entrepreneur David Layani (Onepoint) to abandon the Atos rescue effort marked a significant turning point in the group’s journey. With about 100,000 employees in 69 countries, Atos is a key technology provider for the Paris Games this summer. 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. The deal aims at lifting Atos out of financial distress and achieving a “BB” credit rating by 2026 while ensuring a minimum liquidity amount of €1.1 billion until the end of 2026.

Atos had accumulated massive debts and faced an uncertain future due to its previous mismanagement and poor financial decisions.

However, with this agreement in place, it is hoped that Atos will achieve much-needed financial stability and find a path to recovery as it continues its operations at the beginning of July prior to the Olympic Games with further restructuring operations planned for completion by the end of 2024 or first quarter of 2025.

The announcement from Atos management signals hopeful resolution to crisis that group faced recently