Eiffel Investment Group SAS (the Security Agent), acting as security agent for the lenders to SIG AssetCo, UAB (the Subsidiary), a subsidiary of Sun Investment Group (the Issuer), delivered an enforcement notice (the Enforcement Notice) under the financing made available to the Subsidiary. That financing relates, among other things, to the Młodzikowo solar energy project in Poland (the Project), developed through Elektrownia PV Młodzikowo sp. z o.o. (Elektrownia PV). The financing is secured by a wider security package comprising share pledges, pledges over bank accounts and receivables and other security granted at various levels of the Issuer’s group, including a pledge over the shares in the Issuer.
Under the Enforcement Notice, the Security Agent has commenced enforcement of certain security relating specifically to the Project, namely the pledge over the shares in Elektrownia PV, the pledges over its bank accounts and the security assignment of rights under the related shareholder loan agreements.
The Security Agent has stated its intention to acquire ownership of the shares in Elektrownia PV. The Enforcement Notice also imposes restrictions on the exercise of shareholder rights, the operation of the relevant bank accounts and rights under the shareholder loan agreements.
The Enforcement Notice relates only to the security connected with the Project described above and does not constitute enforcement of any other security within the wider security package, including the pledge over the shares in the Issuer. However, the Security Agent has expressly reserved all of its rights and remedies under the financing and security documents.
The Enforcement Notice does not extend to any collateral securing the Bonds.
The Issuer is assessing the potential implications of the enforcement and is considering the legal and commercial options available to mitigate its consequences, including engagement with the Security Agent and other measures to protect the interests of the Issuer and its stakeholders. The Issuer will inform Bondholders of any further material developments