Paytech titan Diebold Nixdorf set to file for Chapter 11 bankruptcy protection
Paytech heavyweight Diebold Nixdorf is set to file for Chapter 11 bankruptcy protection as part of a debt restructuring agreement with stakeholders.
CEO Octavio Marquez says the move will position the firm for long-term success
The Hudson, Ohio-based firm says the restructuring support agreement is expected to “significantly” reduce debt and provide “substantial additional liquidity” to support the firm’s operations.
Diebold Nixdorf chair, president and CEO Octavio Marquez says: “With the support of our creditors, we have reached an agreement to restructure and strengthen our balance sheet, enhance liquidity and position Diebold Nixdorf for long-term success.
“Our strengthened financial position also enables us to better serve our customers, employees, suppliers and partners.”
The company adds it will “continue to pay vendors and suppliers through the expected restructuring process in the ordinary course of business”.
According to Cleveland.com, the company will file for the Chapter 11 bankruptcy protection through a Texas court and through a similar process in the Netherlands. Diebold Nixdorf communications director Michael Jacobsen told Cleveland.com the firm took on debt when it acquired Wincor Nixdorf in 2016.
Under the restructuring agreement, shares of Diebold Nixdorf would be cancelled, and the stock will be delisted. New shares will be created and given to Diebold Nixdorf’s creditors to pay the company’s debts, Cleveland.com reports.
The restructuring support agreement will also see the firm seek a $1.25 billion debtor-in-possession term loan credit facility as part of the Chapter 11 process.
