Jeantet advised IQEQ MANAGEMENT on the implementation of a trust solution (Fiducie-Gestion) by CARMAT in accordance with its agreement entered into with all its financial creditors, including the european investment bank, on new repayment terms for its bank loans

 

Paris, on June 21 2024 – Jeantet advised IQEQ Management, an AMF-accredited management company, as trustee, in connection with the implementation of a trust solution (fiducie-gestion) by Carmat, in accordance with the final agreement entered into on March 22, 2024 with its financial creditors, including the European Investment Bank, on new repayment terms for its bank loans.

As part of the agreement entered into on March 22, 2024 between Carmat and its financial creditors, including the European Investment Bank (the “EIB”), on new repayment terms for its bank loans, Carmat has announced the setting up of a management trust enabling the start of the equitization of the first tranche of its loan contracted with the EIB on December 17, 2018, for a total amount of €30 million.

In this context, the EIB transferred its receivable in principal and interest in respect of the first tranche of the loan granted by the EIB into the trust assets, it being specified that this receivable was then immediately sold, for technical reasons, to Carmat so that the latter could proceed with its cancellation as a result of the accretion of the qualities of creditor and debtor. This assignment of the receivable to Carmat was not paid in cash, but gave rise to the creation of a vendor loan on Carmat, in favor of the trust.

The trust, managed by IQEQ Management as independent trustee for Carmat and the EIB, will progressively transform the aforementioned receivable into Carmat shares through the exercise of share subscription warrants issued to it free of charge. The shares issued upon each exercise will then be progressively sold on the market by the trust in accordance with predefined conditions and taking into account market volumes, and the net proceeds of such sale will be paid by the trust to the EIB until full repayment of the sums due to it under the first tranche.

An identical mechanism can then be put in place for the equitization of the second and third tranches of the EIB loan, unless the EIB decides to waive it.

This mechanism optimizes Carmat’s cash position, as it reduces the cash repayment of this loan by the company.

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