DBT Bureau
Bengaluru, 15 July 2024
French IT company, Atos on Monday said that it had secured financing of 1.675 billion Euros (around $1.82 billion) from a group of banks and bondholders.
The company in a press release said 50% of its creditors and bondholders participated in this round of funding and the rest can participate until July 22, 2024.
As part of the funding, an interim financing of 800 million Euros (around $872 million) will be provided for liquidity necessary to fund business until close of the financial restructuring plan.
“The Board of directors will remain composed by a majority of independent directors, and certain creditors will have the right to propose the appointment of members and/or observers,” Atos said in the release.
The new governance will be announced after the end of the restructuring, expected at the end of 2024 or at the beginning of 2025, it added.
Atos has been going through a severe financial crisis owing to high debt and series of missteps. Move like acquisition of DXC Technology for $10 billion was not able to yield intended results. The company also reported accounting errors in two of its US entities in 2021, which led to market value erosion owing to sharp fall in the stock price.
Frequent changes of CEOs have made the company weaker. Over three years, Atos had seen five CEOs taking charge. The company was slow to adapt to the cloud computing era and lost market share to the likes of Amazon and Microsoft.
Currently, the company is seeking a financial bail out from suitors for running its operations.
