PARIS – French IT firm Atos received vote approval from more than the required two-thirds of its shareholders and creditors to proceed with a proposed accelerated safeguard plan, the company said on Friday.
The draft plan includes the conversion of 2.9 billion euros ($3.24 billion) of debt into equity, and the receipt of between 1.5 billion and 1.675 billion euros of new money debt, as part of a package of transactions to take place between November 2024 and January 2025, according to a company statement.
Atos – once seen as one of Europe’s champions in the software and technology sector – has been teetering on the brink of financial collapse in recent months, although it secured a crucial restructuring deal with banks and bondholders in June.
The Nanterre Commercial Court will examine the draft plan at an Oct. 15 hearing, and is expected to render its decision by the end of October.
Should the court approve, the plan will be enforceable against all parties, allowing Atos to proceed with its financial restructuring.
($1 = 0.8961 euros)
(Reporting by America Hernandez in Paris, Editing by Rosalba O’Brien)