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21 June 2024
Deals | France | FIN
Gide advised the European Investment Bank on the setting-up of a management trust enabling the start of the "equitization" of the first tranche of the loan contracted by Carmat with the European Investment Bank (the "EIB") on December 17, 2018, for a total amount of €30 million, as part of the agreement reached between Carmat and its financial creditors, including the EIB, on new repayment terms for all its bank loans.
In this context, the EIB transferred its claim in principal and interest in respect of the first tranche of the loan granted by the EIB to the fiduciary estate, it being specified that this claim was then immediately assigned to Carmat, for technical reasons, so that the latter could proceed to its cancellation by confusion of the rights and duties 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 will progressively transform the aforementioned receivable into Carmat shares through the exercise of share warrants issued to it free of charge. The shares issued on the occasion of each exercise will then progressively be sold on the market by the trust in accordance with predefined conditions and taking into account market volumes, and the trust will then transfer the net proceeds of sale to the EIB until full repayment of the sums due to it under the first tranche.
An identical mechanism may then be put in place for the equitization of the second and third tranches of the loan granted by the EIB, unless the EIB decides to waive it.
The Gide team comprised partner Farah El-Bsat and associate Vianney Lenfant.
