To the Bondholders in:
The Secured Fixed Rate Bonds, with SEK ISIN: SE0020552792 and EUR ISIN: SE0020552800 (the “Bonds”), issued by Recap Energy AB (publ) (the “Issuer”).
In reference to the notice of cross default given by The Agent (CSC) to the Bondholders.
On 21 March 2025, the Issuer’s Subsidiary Recap Green Bond I AB filed for bankruptcy with the District Court of Stockholm (Sw. Stockholms tingsrätt) and Jimmy Pilo at Ackordcentralen has been appointed as bankruptcy trustee. This constitutes an Event of Default pursuant to Clause 14.1 (g) (Cross-default) of the Terms and Conditions.
The board of the Issuer has called for a balance sheet for liquidation purposes (sw “Kontrollbalansräkning”) as it is suspected that the Issuers equity is no longer intact. While this work is still being carried out, indications show that the Issuers equity is substantially negative as a result of write-down of various fixed financial assets in the form of holdings in group subsidiaries and group internal loans given to said subsidiaries. Currently the focus lies in finding possible remedies for this situation, and while a range of options are being considered, a significant reduction in debt levels combined with one or more recapitalizations will be required.
Information will be continuously published to keep all stakeholders in the Issuer, including The Bondholders, informed.