The French multinational IT and consulting firm Atos (Paris: ATO) has reportedly revealed that more than €1bn in new funds is needed to implement its proposed restructuring plan.
Atos Needs €1bn Under New Plan
This figure was reported following a private meeting on Monday with the firm’s creditors and bondholders, which was widely reported in the media.
Atos currently owes €2.4bn of debt that’s due for repayment in 2025. However, some sources suggest that the overall debt could be almost double that amount.
It isn’t clear who will provide the cash that the firm needs, but it’s thought that around 50% of the total debt could be converted into equity under the plan that was discussed. Leading shareholder Onepoint said that it’s working on a rescue plan with investment firm Butler Industries that could be implemented by the end of April. Onepoint added that it wants to make Atos:
Europe’s leading sovereign cloud operator.
ATO was once considered a blue-chip share on the French CAC 40 index, but it lost over 90% of the value it once held as failed takeover attempts and governance issues have caused it to move from one crisis to another. The news regarding Onepoint helped the ATO price climb 25% on Monday.
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The firm could get a helping hand from the French government, with Prime Minister Gabriel Attal saying recently that the financial stability of Atos is one of their priorities. This is because they want to ensure the company’s cybersecurity and super-computing abilities, with the government planning to protect their most strategic assets from being sold off.
