Investor notification procedure in the event of a project default or delay

After the closing of a crowdfunding offer on its platform, Enerfip monitors the progress of each financed project (the “Project”), particularly to identify any potential risk of default by the project owner.

A default risk means that the project owner is unable to meet their repayment obligations. This risk can arise at any stage — during the construction phase or during the project’s operation.

For example, a default risk may result from:

The failure of the project owner’s parent company, leading to poor project management;
The insolvency or failure of the issuing company;
Other risks, such as poor project design resulting in lower-than-expected electricity production, or adverse weather conditions;
The inability to secure a loan from a financial institution in the case of “bridge” investments;
The default of the counterparty purchasing the electricity.

This procedure aims to formalize the process for notifying investors in the event of a default on a project listed on the Enerfip platform.

The Project Manager is responsible for implementing and overseeing the monitoring of the Project.

1. Notification to Enerfip by the Project Owner

First and foremost, the Project Owner is required to notify the Enerfip Project Manager without delay of any delay or default affecting the project, in accordance with the service agreement. This notification may be made through any medium, although electronic communication is preferred.

In addition, for projects that present development-related risks (notably risks concerning permits issued to the company, land ownership, or third-party appeals against granted authorizations), a monitoring committee is held on a bi-monthly basis to ensure the project progresses according to initial forecasts.

This monitoring committee is composed of three (3) members:

1 member from Enerfip: the Enerfip Project Manager;
2 members from the Project Owner: the project manager and the chief financial officer.

2. Notification to investors by Enerfip

In the event of a project owner’s default, identified either following a formal notification or during a monitoring committee meeting, the Project Manager must convene an emergency meeting with Ms. Pauline Georgel, Director of Investor Relations, to prepare an email intended for the project’s investors, informing them of the default situation.

This email must be sent without delay and within 48 hours of the project owner’s notification to the Project Manager.

The communication to investors must include the following information:

A reminder of the financed project and identification details of the project owner;
The causes of the default;
The remediation measures being implemented;
A detailed statement of outstanding claims.

Investors are then kept informed of the progress of remediation measures on a quarterly basis or whenever a significant event occurs.Each update email sent to investors must reiterate the detailed information listed above.