Atos, a struggling French IT consulting firm, announced on Thursday that a reassessment of its 2024-2027 business plan indicates a greater requirement for cash than initially projected. This may necessitate additional debt reduction measures, prompting the company to revise its refinancing plan in the coming days.
Atos has also extended the deadline for refinancing proposals from existing stakeholders and third-party investors from April 26 to May 3.
The technology giant, known for its management of data and cybersecurity for France’s nuclear industry and the upcoming Olympic Games, is currently undergoing a refinancing process, which involves raising 1.2 billion euros ($1.29 billion) through equity and new loans. However, this will result in significant dilution for existing shareholders.
CEO Paul Saleh stated, “We will review those proposals with our financial creditors and agree on an appropriate path forward. Our goal remains to finalize a refinancing solution by this coming July.”
The reassessment of Atos’s 2024-2027 business plan is based on current market conditions and the company’s performance in the first quarter of the year.
At the end of March, Atos had a net debt of 3.9 billion euros. Over the past two years, the company has witnessed a decline in its share value following profit warnings, CEO changes, and the failure of potential asset sales, notably its BDS cybersecurity unit and its legacy operation Tech Foundations.
