(Bloomberg) -- Diebold Nixdorf Inc. and some of its lenders remain in confidential talks as the automated teller machines maker works to head off a liquidity shortfall, according to people with knowledge of the discussions. 

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Diebold’s shares sank Friday after the company disclosed in a regulatory filing that it’s facing near-term pressure on liquidity. The company included language in the filing saying “substantial doubt exists” about its ability to continue as a going concern.

Lawyers at Davis Polk & Wardwell, which represents secured lenders and noteholders, held a private call Friday with the group and told some that they are still under confidential agreements, the people said, who asked not to be identified because the matter is private. Separately, a group of first-lien lenders is working with law firm Gibson Dunn & Crutcher, the people said. 

A company representative said that Diebold is in advanced talks with lenders to provide $55 million of additional liquidity through debt facilities. Also, the company has secured a waiver from some default provisions under its loan covenants while Diebold continues to address operating needs and debt obligations over the next twelve months. 

Messages left with Davis Polk and Gibson Dunn were not returned. 

The company’s near-term liquidity issues come as realized revenue and earnings for the fourth-quarter and for January fell below expectations. Furthermore, availability under its asset-based borrowing base also slid below Diebold’s forecast, according to a lender presentation included in the regulatory filings. 

As part of negotiations, Diebold said it wants to discuss a going-concern waiver with lenders and find solutions to solve for its liquidity and capital structure needs, according the filings.

Diebold’s shares fell to around 95 cents on the dollar, down nearly 59% on the day.

--With assistance from Rachel Butt.

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2023-03-18T00:18:16Z dg43tfdfdgfd