SECsense Logo

Fusion Fuel Green PLC's Financial Report: Navigating Insolvency Challenges

$HTOO
Form 6-K
Filed on: 2025-01-03
Source
Fusion Fuel Green PLC's Financial Report: Navigating Insolvency Challenges

Here are the key points extracted from the financial report of Fusion Fuel Green PLC:

  1. Company Overview:
  • Fusion Fuel Green PLC is an Irish public limited company.
  • Principal office located at The Victorians, 10 Earlsfort Terrace, Dublin, Ireland.
  1. SEC Filing Details:
  • This report is filed as a Form 6-K under the Securities Exchange Act of 1934.
  • The filing date is for November 2024, with the commission file number 001-39789.
  1. Securities Subscription Agreement:
  • On November 21, 2023, the company entered into a Securities Subscription Agreement with Belike Nominees Pty Ltd., a Macquarie Group entity, as the lead investor.
  • The agreement involves a commitment to subscribe for convertible promissory notes totaling up to $20 million, issued in tranches based on specified conditions.
  1. Issuance of Placement Note:
  • On May 7, 2024, the company issued a Placement Note to one of the investors amounting to $1,150,000 as part of the Securities Subscription Agreement.
  1. Events of Default:
  • The May 2024 Note contains customary events of default, including a Bankruptcy Event of Default if insolvency proceedings are initiated against the company or its subsidiaries.
  • Fusion Fuel Portugal S.A., a wholly-owned subsidiary, filed for insolvency on November 11, 2024.
  1. Implications of Insolvency:
  • The initiation of insolvency proceedings may trigger a Bankruptcy Event of Default under the May 2024 Note.
  • Upon such an event, the company is required to repay the outstanding amount with an additional 25% and an increased interest rate of 18.0% per annum.
  1. Outstanding Balance:
  • As of the date of the insolvency filing, the outstanding balance under the May 2024 Note was approximately $140,000.
  1. Forbearance Discussions:
  • The company has initiated discussions with the noteholder regarding a possible forbearance agreement or waiver, but no agreement has been reached as of now.
  1. Signature:
  • The report is signed by John-Paul Backwell, Chief Executive Officer, on January 3, 2025.

This report highlights significant financial challenges faced by Fusion Fuel Green PLC, particularly the insolvency of its subsidiary, which has potential implications for its financing arrangements.