Onepoint consortium withdraws Atos financial restructure proposal

The proposal had been accepted by Atos’ board of directors only two weeks ago

Onepoint, Butler Industries and Econocom consortium have withdrawn from discussions with French reseller Atos to restructure the company financially.

Atos had recently accepted the consortium's proposal on 12 June, which amongst many changes would have seen €2.9bn of existing debt to be converted into equity.

Atos also announced that it has received a revised global financial restructuring proposal from its bondholders' representative committee (SteerCo).

The company is actively engaged in negotiations with the SteerCo and certain banks to reach an agreement as soon as possible.

Atos warns that the implementation of the contemplated financial restructuring plan will result in massive dilution for existing shareholders, who would retain less than 0.1 per cent of the share capital.

In a separate development, Atos has finalised an agreement with the French State to protect sovereign interests in certain activities carried out by the Atos group.

This agreement grants the French State governance rights and potential purchase options for sensitive activities.

Despite these challenges, Atos confirms that its business activities are in line with the plan presented on 29 April, 2024.

The company has also received a letter from EPEI expressing interest in participating in the financial restructuring.

Atos aims to reach a definitive financial restructuring agreement with a majority of financial creditors during the week of 22 July, 2024.

The company expects to achieve an in-principle agreement this week, followed by a new money backstop process and the signing of a lock-up agreement in early July.

As the situation unfolds, stakeholders are closely watching Atos's efforts to navigate its financial challenges and secure its future in the competitive IT services market.