Atos hopes to have its debt restructured by July. The ailing French IT company plunged hard on the stock market after posting disappointing financial figures and a scrapped deal with Airbus.
Atos CEO Paul Saleh, who took office in January, hopes to finalize a new deal with creditors in July. The company posted a record loss of 3.44 billion euros in 2023, much bigger than the year before when it lost 1.01 billion.
Deteriorating situation
The negative annual figures are not unexpected. However, Airbus’s intended acquisition of Atos’ cybersecurity (BDS) division seemed to provide relief, but nothing could be further from the truth. Last week, the aircraft maker abandoned the deal, which the French government emphatically backed.
Read more: Airbus abandons acquisition of Atos unit, €1.8B dollar deal called off
It’s becoming a lot less likely Atos will be able to hive off its divisions. The Tech Foundations division appeared to be acquired by EPEI, led by Czech businessman Daniel Kretinsky. However, that deal also recently fell through, after which Atos shook up its board of directors.
French state as a lifesaver
Although Atos is in bad shape, the French state offers hope. The government wants to prevent the loss of tens of thousands of jobs due to a possible bankruptcy of Atos. The French Finance Ministry stated that it wanted to guarantee “all the interests of France” with a “national solution.”
It is the second time in a short time that Atos wants to refinance outstanding debts. The deadline for repaying significant loans is approaching, which will require a deal to be finalized by July.
Also read: Atos has new plans after failed deal with EPEI, which still wants a deal
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