2026: Xerox Just Risked Everything in Desperate $450 Million Loan Deal.

Xerox appears to be facing significant financial strain, having entered a joint venture (JV) structured as a bankruptcy safeguard. The agreement includes strict covenants, which limit Xerox’s ability to acquire assets, incur debt, or sell business units like ITSavy or Lexmark.

Xerox Puts Everything on the Line in $450 Million Loan Deal
If Xerox defaults on its loan, the JV will effectively take control of its valuable intellectual property and assets, leaving the company with little leverage or free cash flow. This setup raises concerns about Xerox’s ability to reorganize in the event of Chapter 11 bankruptcy, as the covenant restrictions prevent common restructuring actions like mergers or asset sales.

A Last-Ditch Effort or a Path to Collapse?
Essentially, Xerox has traded long-term value for a short-term lifeline, potentially jeopardizing its future and putting signatories of the agreement in a precarious legal position.