The agreement is conditional on Altran reducing its debt-to-equity ratio to 1.15 by the end of 2005, and to 1.0 by the end of 2006. The ratio currently stands at about 1.4. It also has to reduce its net debt to earnings before interest taxes depreciation and amortization (EBITDA) ratio to 2.0 by the end of 2008 from 5.0 currently.
Paris-based Altran has had a traumatic year. In July 2004, a formal investigation into Altran’s full year 2001 and 2002 accounts was launched, which resulted in several Altran managers being taken into police custody. In September it announced the resignation of co-founder and vice president Hubert Martigny, managing director Michel Friedlander, and deputy managing director Jean-Michel Martin. As well as having to deal with such a scandal, it has also faced serious operating difficulties, and in August it issued a profit warning.
