Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 320

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 1A
Chunk 320
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 or at all.

If we fail to comply
with financial and other covenants under debt arrangements, our financial condition, results of operations and business prospects may
be materially and adversely affected.

We have a number of covenants
related to certain debt arrangements. These restrictions could affect our ability to operate our business and may limit the ability to
react to market conditions or take advantage of potential business opportunities as they arise. For example, such restrictions could adversely
affect our ability to finance our operations, make strategic acquisitions, investments or alliances, restructure our organization or finance
our capital needs. Additionally, our ability to comply with these covenants may be affected by events beyond our control. These include
prevailing economic, financial and industry conditions. Failure to comply with financial and other covenants may potentially result in
increased financial costs, the requirement for additional security or cancellation of loans, which in turn may have a material adverse
effect on our results of operations, cash flows and financial condition.

Any default under debt
arrangements could lead to an event of default and acceleration under other debt instruments that contain cross default or cross acceleration
provisions, as applicable at any given time. If our creditors accelerate the payment of those amounts, investors cannot be assured that
our assets would be sufficient to repay in full those amounts, to satisfy all other liabilities which would be due and payable and to
ensure that net assets will be available to the shareholders. For example, our prior subsidiary, Solis Bond Company DAC, breached all
three financial covenants under its bond terms. As such, Solis was unable to fully repay the Solis Bond by its maturity date (as extended),
and Solis’ bondholders transferred ownership of Solis and all of its subsidiaries to the bondholders. This resulted in the majority
of our operating assets and related revenues being eliminated and are no longer able to book the associated EBIDTA. This has had a material
adverse effect on our results of operations, cash flows and financial condition.

In addition, we typically
pledge our solar park assets or account or trade receivables to raise debt financing, and we are restricted from creating additional security
over its assets. If we are in breach of one or more financial or other covenants or negative pledge clauses under any of our loan agreements
and are not able to obtain waivers from the lenders or prepay such loan, repayment of the indebtedness under the relevant loan agreement
may be accelerated, which may