Universal Registration Document 2021

3 RISKS, LITIGATION, AND CONTROLS RISK FACTORS

INDEBTEDNESS

In particular, the documentation of the Group’s New Money debt and Committed Receivables Facility contains financial covenants that the Group must respect: a ratio of total net debt to EBITDA, tested on June 30 and • December 31 starting in 2021, must be less than or equal to the levels given below: June 30, 2021: 6.00, • December 31, 2021: 5.00, • June 30, 2022: 4.50, • December 31, 2022 and thereafter: 3.50; • a minimum liquidity covenant requires the Group to maintain at • least €30 million of cash and available credit lines on certain dates. Failure to respect these financial covenants would constitute a default. Moreover, the financial loans documentation includes so-called “cross default” clauses which, absent a waiver from the creditors, would provide them with the right to declare amounts that are outstanding thereunder at the time of any default under other financial loans documentation (plus accrued interest, fees, and other amounts due hereunder) immediately due and payable. Upon the occurrence of a change of control of the Group, any outstanding amounts under the financial loans documentation would become immediately due and payable. The Group cannot ensure that it would have sufficient liquidity to reimburse or be able to refinance all or part of the amounts that came due following an event of default or change of control.

68

TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2021