Proposal includes conversion 2.9 bln eur debt into equity (Il Sole 24 Ore Radiocor) - Paris, 11 Jun - The troubled French information technology group Atos said it has decided to proceed with the financial restructuring proposal submitted by its main shareholder Onepoint and its consortium partners including Butler Industries and Econocom, and a group of some of the company's financial creditors.

Atos said that the proposal aligns with the corporate interest of the company, particularly its employees and clients and is generally consistent with the key financial parameters outlined in April by the Company, notably providing adequate financial liquidity to fund the business and ensuring a stronger capital structure.

The proposal also has the support of a large number of Atos' financial creditors and thus gives greater confidence in reaching a definitive financial restructuring agreement. Atos will work with the Onepoint consortium to reach a definitive financial restructuring agreement to be subsequently implemented by a dedicated accelerated procedure by July 2024.

The proposal includes the conversion of 2.9 billion euros of existing debt into equity and 1.5 billion euros of new money debt, including 300 million in bank guarantees. It also envisages 250 million euros in new money equity of which 175 million from the Onepoint consortium, for 21% of the fully-diluted equity and 75 million from creditors, for 9% of the fully-diluted equity.

As indicated by the company in its previous communications, the implementation of the contemplated financial restructuring proposal will result in a massive dilution of the existing shareholders of Atos, who would hold less than 0.1% of the share capital.

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(RADIOCOR) 11-06-24 08:02:43 (0096) 5 NNNN