Atos - comment

Atos has not disclosed the % of financial creditors who have signed the Lock-up Agreement, which implies the number is low, only stating a majority has done so.  Given the lack of alternatives, we had expected the vast majority of creditors to have signed up by now. The remainder has the opportunity to accede to the Lock-up until July 22nd, and subsequently, the Company will enter an accelerated safeguard proceeding during the week of July 22nd.  Atos confirmed that a group of banks and bondholders have backstopped the new Secured Financing of €1.675bn.   

Creditors who sign the Lock-Up Agreement before July 19th will receive a 50bps Early Accession Fee, which reduces to 25bps if signed before July 22nd.