(AOF) – Following discussions held in recent weeks, the French State and Eramet have agreed to an agreement on the treatment of SLN’s existing debt. This agreement will make it possible to neutralize the weight of SLN’s debt in the group’s consolidated accounts. The agreement includes three provisions. The State and Eramet have jointly decided to convert their existing loans from SLN into the form of a quasi-equity instrument.
The 320 million euros of existing State loans to SLN, currently consolidated as financial debt in the group’s accounts, will thus be transformed into quasi-equity, comparable in accounting terms to equity in Eramet’s consolidated accounts. .
Eramet will similarly convert the existing intra-group debt of €325 million using the same scheme. This conversion has no impact on the group’s consolidated accounts but allows pari passu treatment of the State’s and Eramet’s debts.
The Eramet group also reiterates its decision to no longer grant new financing to SLN, in order to preserve the group’s balance sheet. However, in parallel with potential financial support from the State and New Caledonian communities within the framework of the nickel pact in order to ensure the continuity of activity of the SLN, Eramet will continue to support the SLN operationally over the long term.
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