ATM manufacturer Diebold Nixdorf has submitted a bankruptcy petition in Texas, citing an agreement that would reduce the company’s overall debt by $2.1 billion.
The Ohio-based firm, burdened with over $2.7 billion in debt, has secured $517 million in loans from its lenders to finance its bankruptcy proceedings, as stated in documents filed with the Houston bankruptcy court. This fresh infusion of funds forms part of a larger debt reduction plan, with the aim of emerging from bankruptcy in the third quarter of 2023.
Diebold Nixdorf, a competitor of NCR Corporation, emphasized the urgent need for these new loans. The company currently holds a mere $140 million in cash reserves and faces imminent payments of $668 million to lenders and trade vendors within the next six weeks, according to the court filings.
The financial struggles of Diebold Nixdorf began after its acquisition of Germany-based Wincor Nixdorf for $1.8 billion in 2016. The merged entity experienced stagnant or declining sales in its core business of selling ATMs to banks and checkout machines to retail customers.
Prior to filing for bankruptcy, Diebold Nixdorf undertook cost-cutting measures, including reducing its real estate holdings, streamlining its ATM product lineup, and renegotiating its debt in March 2022.
Diebold Nixdorf operates in over 100 countries, selling ATMs and point-of-sale systems. Shortly before the bankruptcy filing, its shares were trading at $1.25 on the New York Stock Exchange.
The global ATM market is expected to grow from $19.94 billion in 2021 to $22.08 billion in 2022 at a compound annual growth rate (CAGR) of 10.7 percent. The ATM market is expected to grow to $28.82 billion in 2026 at a compound annual growth rate (CAGR) of 6.9 percent.
