By means of a lock-up agreement, the French IT giant Atos was able to restructure its debt with a group of banks and bondholders that made up over 50% of its creditors.
A lock-up agreement with a group of banks and bondholders, comprising over 50% of its creditors, allowed the French IT giant Atos (ATOS.PA) to restructure its debt. The business announced on Monday that it had received capital of 1.675 billion euros ($1.82 billion). Up to July 22, Atos said, remaining creditors might take part in the accord. In the first hour of Paris trade, its shares increased by about 10% to 1.17 euros each.
In addition, Atos announced that it has obtained an additional 800 million euros in interim funding, of which 450 million euros were immediately available to it. This would give the company the cash flow it needs to continue operating until the financial restructuring plan is completed. It stated that the company would remain “not controlled” following the completion of the financial reorganization and that bondholders and banks did not intend to act jointly.
A majority of independent directors will continue to make up the Board of Directors, and specific creditors will be able to suggest the appointment of observers or members,” Atos stated. It stated that the announcement of the new governance will come after the reorganization is finished, which is anticipated to happen at the end of 2024 or the start of 2025.
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