(Reuters) – Struggling French IT consulting firm Atos on Thursday said a review of its 2024-2027 business plan would lead to an increased need for cash and potentially additional debt reduction, forcing it to update the parameters of its refinancing plan in the coming days.
Atos also said it would extend the deadline for refinancing proposals from existing stakeholders and third-party investors from April 26 to May 3.
The technology giant, which manages data and cybersecurity for France’s nuclear industry and the upcoming Olympic Games, is in the midst of a refinancing, which includes raising 1.2 billion euros ($1.29 billion) via equity and new loans and will result in significant dilution for existing shareholders.
“We will review those proposals with our financial creditors and agree on an appropriate path forward. Our goal remains to agree on a refinancing solution by this coming July,” Chief Executive Officer Paul Saleh said in a statement.
The review of the group’s 2024-2027 business plan is based on current market conditions and business performance for the first quarter of the year, Atos said.
The company, whose net debt stood at 3.9 billion euros at the end of March, has seen its shares plummet over the past two years after profit warnings, a revolving-door of CEOs and the collapse of potential asset sales, notably its BDS cybersecurity unit and its legacy operation Tech Foundations.
Atos on Thursday also announced sales for the first quarter of 2.48 billion euros, down 2.6% year-on-year.
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(Reporting by Diana Mandiá; Editing by Mrigank Dhaniwala)
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