Breaking News
More () »

Hudson-based Diebold Nixdorf plans to file for Chapter 11 bankruptcy

The restructuring is expected to occur in the third quarter of 2023, with the company saying no layoffs are expected.

HUDSON, Ohio — After reaching an agreement with key financial shareholders to restructure its debt, Diebold Nixdorf plans to file for Chapter 11 bankruptcy protection, the Hudson-based company announced on Tuesday.

In a release on its website, the company said that the restructuring is "expected to significantly reduce debt and leverage levels and provide substantial additional liquidity to support seamless ongoing operations and establish a long-term, sustainable capital structure for the Company." The debt restructuring is expected to be completed "efficiently and quickly."

"Our company is focused on continuing our solid operational performance and delivering best-in-class products and services to banks and retailers around the world. 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," Diebold Nixdorf chairman, president and chief executive officer Octavio Marquez said in a statement.

"Our strengthened financial position also enables us to better serve our customers, employees, suppliers and partners. I am excited about the future of Diebold Nixdorf and all we will accomplish."

According to the release, the company's debtors will seek the approval of a $1.25 billion debtor-in-possession term loan credit facility as a part of the Chapter 11 filing. Per the release, the facility will be used to:

  • Repay all obligations under the Company's superpriority credit facility.
  • Repay in full (or cash collateralize issued letters of credit) the Company's asset-based revolving credit ABL facility.
  • Pay costs and reasonable and documented out-of-pocket fees and expenses related to the court-supervised restructuring proceedings.
  • Fund the working capital needs and expenditures of the Debtors and their non-debtor affiliates during the pendency of the court supervised restructuring proceedings.

The restructuring is expected to occur in the third quarter of 2023.

"We've spent a lot of years trying to address the debt at different levels, whether it's trying to outgrow it or shrink the company," Diebold Nixdorf spokesperson Michael Jacobsen told 3News in an interview. "But leadership determined that now is the time to address the debt burden head on and move forward with a capital structure that will really put us in a better position both now and in the future."

A publicly traded company, Diebold Nixdorf "automates, digitizes and transforms the way people bank and shop" through the creation of transaction systems such as ATMs and security equipment. The company relocated from its previous headquarters in Green to Hudson in 2021.

Of Diebold Nixdorf's roughly 21,000 employees, around 1,200 live in Northeast Ohio. However, officials don't believe this decision will lead to any current layoffs.

Before You Leave, Check This Out