Application for establishment of trustee

Recylex SA does not have sufficient financial resources to enable debt restructuring in a friendly framework, given the offers we received as part of the asset disposal process initiated in May 2021. , And (ii) it is not possible to implement a planned asset disposal program in the inbonis1 framework.

The offers we have received so far are:

Offers to value Escaudoeuvres and Villefranche-sur-Saône’s industrial land and the securities of its subsidiary C2P SAS for less than € 2.5 million, allowing them to maintain their activities and jobs (60 jobs total).
Two offers that value a 50% stake in Recytech SA at € 40 million. This share is subject to the first and second pledges, especially in favor of Glencore International AG.
An offer to rate a closed L’Estaque site for less than € 500,000 (assuming potential buyers’ remediation obligations).
These amounts should be compared to the total net debt of € 52.2 million. To this is an additional allowance of € 16.2 million 2, or € 68.4 million in total for environmental risks and liabilities. We do not expect to receive other offers given that great efforts have been made to find potential buyers.

This asset disposal process is part of a company-led, friendly prevention procedure (arbitration) that has been underway for several months and may end on April 15, 2022 without a debt restructuring plan.

In addition, most of the Group’s debt will be due due after April 15, 2022.

As a result, we are in bankruptcy and are preparing to request the Commerce Court of Paris to initiate a trustee proceeding under the conditions stipulated by law3.

The conditional offer issued by Campine NV, which the company received in connection with two industrial sites (including its subsidiary C2P SAS at the Villefranche-sur-Sone site), is a job related to site group businessmen. However, the cancellation of the condition remains uncertain to this day.

This offer is an agreement between Campine NV and the French state service on the amount of financial guarantee that buyers will have to make if these two sites classified as “Seveso” are reopened. It is a target.

If the court grants the request to initiate a trustee proceeding, this procedure allows the court to review the offer received from the company Campine NV and consider a legal solution for the restructuring of the company’s debt. ..

Since this offer is the only offer related to industrial land, we request that Campine NV’s offer be considered by the Paris Commercial Court in accordance with the terms of the pre-sales package. This in particular means accelerating the schedule. Limit the impact on industrial land activities and employment.

Therefore, the asset disposal process carried out by the Company after May 2021 will be handed over to the Paris Commercial Court in parallel with the debt restructuring process.

However, given the size of the debt and other debt and the low value of the assets resulting from the offers received when the trustee is opened, the prospect of adopting the recovery plan is parallel to the planned sales prepack. And it remains uncertain.