Information as of September 23, 2020 - Seite 3

In this context, Recylex S.A.'s ability to continue as a going concern depends on the fulfilment of several structuring assumptions², relating not only to the continuation of business with Weser-Metall GmbH, but also to the restructuring of Recylex S.A.'s financial and non-financial debt. Due to the developments caused by the SARS-CoV-2 pandemic on its financial situation and to all these uncertainties, Recylex S.A. has in particular¹:

• Initiated discussions with Glencore International AG in order to obtain an extension beyond October 31, 2020 of the waiver of its right to terminate immediately the €16.0 million loan granted in 2014 and an adjustment of the interest charge,
• Initiated discussions with the European Commission regarding the staggered payment plan for the fine imposed on the Group in 2017,
• Solicited from the relevant authorities the temporary suspension of the rehabilitation works at L'Estaque site until December 31, 2021 and the postponement of the date of completion of the rehabilitation works until December 31, 2024.

3. Update on current legal proceedings concerning Recylex S.A.

The document summarizing the proceedings concerning Metaleurop Nord S.A.S. and Recylex S.A., updated on September 15, 2020, is available on the Finance section of the Recylex Group website.

Concerning the claims of 187 former employees of Metaleurop Nord S.A.S. for compensation for dismissal without fair cause and/or prejudice of anxiety as a reminder, on May 24, 2018 the French Supreme Court (Cour de cassation) on the one hand upheld the rulings of the Douai Court of Appeal in so far as they ruled that Recylex S. A. was not co-employer of the former employees of Metaleurop Nord S.A.S. and, secondly, reversed and cancelled these rulings in so far as they had ordered Recylex S.A. to pay damages to these 187 former employees (for a total amount of €7.8 million in 2017).

Following this decision, Recylex proposed an amicable settlement in favor of all former employees, involving the reimbursement of 50% of the sums paid by the company in 2017. To date, 86 of them have accepted this solution (in the amount of approximately €1.9 million), 84 have refused and seized the Amiens Court of Appeal on referral after Cassation and 17 have not taken action nor appealed. The company has given a complementary deadline in this respect after which it will use the means at its disposal to obtain reimbursement of these amounts.