Company: ALCE
Filing Date: 2025-06-30
Form Type: 10-Q
Source: 0001213900-25-059349
Chunk: 87

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-30
Form: 10-Q
Item: Part I, Item 1
Chunk 87
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 Energy Group PLC (“AEG”), to be conducted in Minneapolis, MN in accordance
with the Commercial Arbitration Rules of the American Arbitration Association (the “AAA”), claiming that approximately
$5 million is due and owed to Sunrise pursuant to a settlement agreement by and among the parties, plus costs, expenses, legal fees and
interest. On or about February 6, 2025, the Company entered into a second set of settlement terms with Sunrise, pursuant to which the
Company agreed to make certain monthly payments to Sunrise, related to amounts allegedly owed by one of the Company’s former subsidiaries
pursuant to a share purchase agreement, and in exchange Sunrise dismissed its arbitration case against the Company. As of March 10, 2025,
the Company breached its payment obligations under the settlement terms, and on June 18, 2025 an arbitration award of $5.7 million was
granted to Sunrise. The Company has accrued a liability for this loss contingency in the amount of approximately $5.7 million, which represents
the amount allegedly owed.

On March 11, 2025, the Company was served a complaint
filed in the Superior Court of the State of Delaware by SPAC Sponsor Capital Access (“SCAF”) , claiming that approximately
$1.5 million is due and owed to SCAF pursuant to a settlement agreement by and among the parties, plus costs, expenses, legal fees, interest
and damages, if proven. The Company has accrued a liability for this loss contingency in the amount of approximately $1.5 million, which
represents the contractual amount allegedly owed. It is reasonably possible that the potential loss may exceed our accrued liability due
to costs, expenses, legal fees, interest and damages that are also alleged by SCAF as owed. On June 17, 2025 SCAF filed a motion for summary
judgment. The parties are currently in further settlement discussions.

On May 8, 2025, the Company, Alternus Energy Group
PLC (AEG) and one of AEG’s subsidiaries, Alternus Energy Americas Inc. (AEA), was served a Demand for Arbitration through JAMS in
Washington DC by Orrick, Herrington and Sutcliffe LLP (“Orrick”), claiming that approximately $1 million is due and owed to
Orrick pursuant to an engagement agreement entered into with AEA, plus interest. The Company intends to vigorously defend itself in this
matter and has filed a motion to dismiss