Company: ALCE
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-007054
Chunk: 220

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 220
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 our
debt as they come due and comply with the covenants in the agreements governing our indebtedness or, if we fail to do so, to (i) negotiate
and obtain waivers of or forbearances with respect to any defaults that occur with respect to our indebtedness, (ii) amend, replace,
refinance or restructure any or all of the agreements governing our indebtedness, and/or (iii) otherwise secure additional capital. However,
we cannot provide any assurances that we will be successful in accomplishing any of these plans.

As of December 31, 2022, Solis
was in breach of the three financial covenants under Solis’ Bond terms: The Solis Bond is senior
secured through a first priority pledge on the shares of Solis and its subsidiaries, a parent guarantee from Alternus Energy Group Plc,
and a first priority assignment over any intercompany loans.

In April 2023 the bondholders
approved a temporary waiver and an amendment to the bond terms to allow for a change of control in Solis (which allows for the transfer
of Solis and its subsidiaries underneath Clean Earth Acquisitions Corp. on Business Combination Closing). In addition, bondholders received
a preference share in an Alternus holding company, AEG JD 02 Limited, which holds certain development projects in Spain and Italy. The
shares will have preference on any distribution up to € million, and AEG JD 02 will divest assets to ensure repayment of the €
million should the bonds not have been fully repaid at maturity (). Finally, bondholders will receive a % amendment fee,
which equates to € million.

F-11 On June 5, 2023 the bondholders approved an extension to the waiver to September 30, 2023 and the bond trustee was granted certain additional information rights and the right to appoint half of the members of the board of directors of Solis, in addition to the members of the board appointed by the Company. Under the waiver agreement, as extended, Solis must fully repay the Bonds by September 30, 2023. If Solis is unable to fully repay the Solis Bonds by September 30, 2023, Solis’ bondholders have the right to immediately transfer ownership of Solis and all of its subsidiaries to the bondholders and proceed to sell Solis’ assets to recoup the full amount owed to the bondholders, which as of September 30, 2023 is currently € 150,