Diebold Nixdorf, a developer of ATMs, filed for bankruptcy in Texas on Thursday, saying it had achieved an agreement to cut the company’s total debt by $2.1 billion.
According to court documents filed in Houston bankruptcy court, the Ohio-based company entered bankruptcy with over $2.7 billion in debt, and its lenders have agreed to contribute $517 million in additional loans to fund the company’s bankruptcy.
The fresh funds are part of a larger debt reduction plan that should allow the company to emerge from bankruptcy in the third quarter of 2023, according to a statement from the company.
Diebold Nixdorf stated that the new loans are urgently required. According to court records, it has only $140 million in cash on hand and must pay $668 million to lenders and trade vendors in the next six weeks.
Since acquiring German company Wincor Nixdorf AG for $1.8 billion in 2016, Diebold has struggled with debt. After incurring significant debt in that transaction, the newly combined company faced flat or declining sales in its primary business of providing ATMs to banks and retail users.
Diebold Nixdorf sells ATMs and POS systems in over 100 countries. Its stock traded on the New York Stock Exchange for $1.25 shortly before its bankruptcy filing.
