Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement

Analyst Summary

Alternus Clean Energy, Inc. breached its payment obligations under a settlement agreement with Sunrise Development LLC, resulting in approximately $5.5 million immediately due and owed.
Sunrise has the right to file a stipulation with the arbitrator to enter an arbitration award of approximately $5.5 million against the Company.
The Company was served a complaint filed by SPAC Sponsor Capital Access (SCAF) claiming approximately $1.5 million is due and owed pursuant to a settlement agreement.
The Company has accrued a liability of approximately $1.5 million for the SCAF claim, but the potential loss may exceed this amount due to additional costs, expenses, legal fees, interest, and damages.
The parties are currently in further settlement discussions regarding both the Sunrise and SCAF matters.

The breach of payment obligations and the lawsuit could negatively impact the company’s financial stability and performance.
The need to pay significant amounts to Sunrise and SCAF may strain the company’s cash flow and resources.
Legal and settlement costs could further burden the company’s financial performance.
The company’s ability to raise financing may be adversely impacted.

The news of the payment breach and lawsuit could negatively impact investor confidence and lead to a decrease in the company’s stock price.
Uncertainty surrounding the outcome of the settlement discussions and potential additional losses could create volatility in the stock price.