Company: ALCE
Filing Date: 2025-06-30
Form Type: 10-Q
Source: 0001213900-25-059349
Chunk: 149

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-30
Form: 10-Q
Item: Part I, Item 8
Chunk 149
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, Alternus 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 is currently assessing its options. 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