Company: SGBAF
Filing Date: 2025-04-23
Form Type: DRS/A
Source: 0000950123-25-003652
Chunk: 476

Company: SES S.A.
Filing Date: 2025-04-23
Form: DRS/A
Chunk 476
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1 has been repaid or settled and extinguished. The IRC provides that a debtor in a Chapter 11 bankruptcy case may exclude cancellation of debt income (“CODI”) from taxable income but must reduce certain of its tax attributes by the amount of any CODI realized as a result of the consummation of a plan of reorganization. The amount of CODI realized by a taxpayer is determined based on the fair market value of the consideration received by the creditors in settlement of outstanding indebtedness. Upon emergence from Chapter 11 bankruptcy proceedings, CODI may reduce some or all of the amount of prior U.S. tax attributes, which can include net operating losses, general business credits, capital losses, and tax basis in assets. The actual reduction in tax attributes occurred effective December 31, 2022. The Company’s amount of remaining U.S. deferred tax assets, against which a partial valuation exists, will be limited under IRC Section 382 due to the change in control resulting from the Final Plan. In 2024, the Company realized intercompany installment income F-163

Confidential Treatment Requested by SES Pursuant to 17 C.F.R. Section 200.83 at a US subsidiary. This resulted in a taxable income event which utilized a portion of the existing recognized built-ingain (“RBIG”) income. The Company has evaluated the impact of the reorganization, including the change in control, resulting from its emergence from bankruptcy. The post-Emergence Company was able to fully absorb the CODI realized by the pre-EmergenceCompany in connection with the reorganization as an offset to current year operating losses without impacting its net historical operating losses, general business credits, capital losses, and tax basis in assets. The tax attribute limitation rules under IRC Section 382 are subject to favorable modification by items such as RBIG income. Subsequent to year-end2023, the Company received notice that the IRS had agreed to extend the identification period for qualified replacement property, and so the ARP income was not recognized in the 2023 Federal tax return filing. The Company has until December of 2027 under its current extension to identify the remaining qualified replacement property to continue to defer the income under section 1033. If qualified replacement property is not identified and placed into service and no additional extensions are granted by the IRS, the Company will be required to amend its originally filed tax returns for 2023 to recognize the income and effects of RBIG on its section 382 limitation. As a result of this possible RBIG income inclusion