ATM Maker Diebold Cleared to Tap ‘Prohibitively Expensive’ Loan

Diebold Nixdorf Inc., maker of automated teller machines, secured interim approval to immediately access more than $1.2 billion to fund itself through bankruptcy.

The Hudson, Ohio-based company will have to pay off more than $700 million in existing loans using the debtor-in-possession bankruptcy financing, according to a court presentation on Friday. This will leave it with around $517 million of additional cash.

The bankruptcy financing bears a double-digit interest rate and requires Diebold pay out premiums to the lenders in the form of new common stock, court papers show. In all, the firm hopes to convert more than ...