Claim for damages brought by SNCF Réseau concerning the
Recylex SA (Euronext Paris: FR0000120388 – RX) announces that it has been ordered to pay SNCF Réseau the sum of 5.7 million euros for the “global rehabilitation” of the public rail domain near the Estaque sector, in solidum with SASU Retia, a subsidiary of Total Energies. The two companies will have to pay the surplus, to the tune of 63.3 million euros, as and when SNCF Réseau calls for funds.
Recylex SA has decided to appeal this decision, it being specified that the appeal does not automatically suspend its execution: “This decision of the Administrative Court of Marseille further endangers the process of restructuring the debt of Recylex SA, which has succeeded in stabilize its operational activities. in recent months and to maintain its position in the market despite the unfavorable circumstances linked to the pandemic. The SNCF Réseau lawsuit places the company in an even more difficult situation, threatening employment and the future of the company ”, underlines the chairman of the board of directors, Thomas Hüser.
This decision comes at a critical time for the financial health of the Recylex group, a major French player in the circular economy employing 70 people at three sites in France and responsible for heavy environmental liabilities inherited from the Group’s industrial history.
Depending on the Company’s cash position and the fact that it does not have credit lines, the immediate payment to SNCF Réseau of the initial sum of 5.7 million euros could lead to suspension of payments. In this context, the Company intends to challenge this decision by any legal remedy deemed useful, both on its merits and on its exigibility, as it has always done against requests from SNCF Réseau since the start of this procedure.1 2, in order to continue the restructuring process initiated. At May 31, 2021, the Company’s net financial debt amounted to € 41.9 million3. At the same date, cash and cash equivalents amounted to 8.4 million euros.
As a reminder, since the maturities of the financial debt are not compatible with the Group’s cash generation, Recylex SA had already initiated discussions with its main creditors, namely Glencore International AG and the European Commission, in order to adjust the amount. and the maturity of the debt to its cash-generating capabilities.
In this context, and in order to preserve jobs linked to its activities, the Group continues to explore the various options for restructuring its debt.
Thus, at the end of April 2021, the Group appointed the investment bank Oddo-BHF to support it in the process of selling certain activities and / or assets. At the same time, the Company has also initiated a process to sell the abandoned Estaque site, which ceased its activities several years ago.
Recylex SA will continue to inform its shareholders of the progress of the restructuring process.
1 See press release of May 7, 2018 and Notes 1 and 30 to the consolidated financial statements as of December 31, 2020.
2 As a reminder, as indicated in note 30 to the consolidated financial statements at December 31, 2020: “Concerning the request filed by SNCF Réseau tending to jointly order Recylex SA and RETIA SASAU to pay the full amount necessary for the“ complete rehabilitation ”of the public railway assets of the Estaque railway section in Marseille, Recylex SA did not make any provision in its accounts at December 31, 2020 to cover these risks. Recylex SA considers this procedure to give rise to a potential liability which does not meet the recognition criterion according to IAS 37 because: i) Recylex SA disputes the legal basis of this motion and therefore if there are any implicit obligations or demands, and ii ) There is no detailed documentation concerning this request enabling it to assess the probability of an outflow of financial resources.
3 Net financial debt at May 31, 2021, excluding IFRS 16 rental debt.
Warning: This press release may contain forward-looking statements which constitute either trends or targets and should not be construed as forecasts of earnings or any other indicator of performance. This information is by nature subject to risks and uncertainties, as described in the Company’s annual report available on its website (www.recylex.fr). More detailed information on Recylex is available on its website (www.recylex.eu).
Raw materials for urban mines
The Recylex Group is a European specialist in the recycling of lead, zinc and polypropylene.
For more information on the Recylex Group: www.recylex.eu
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Recylex SA | Head office: 6 place de la Madeleine | 75008 Paris | France
Administrative office: 79 rue Jean-Jacques Rousseau | 92158 Suresnes Cedex | France