TMA Europe Conference Berlin 11 June 2010 Comparative multi-jurisdictional discussion on out-of-court restructuring/regimes

2 The Danish restructuring regime (-s) |The existing regulation is based on: |Suspension of payments combined with |Compulsory composition scheme or bankruptcy |Application to the local bankruptcy court in case of insolvency: |Over indebtedness |Illiquidity |No legal requirement to file |Connected to corporate governance requirements of maintaining a “sufficient cash readiness”

3 The Danish restructuring regime (-s) |A suspension of payment is expected to have a purpose. |Maximum duration of 12 months in maximum periods of 3 months |”A general composition for the creditors” |Compulsory composition – voted for by unsecured creditors |Bankruptcy |Suspension of payments is most often used as a tool to give time for (a final) attempt to sell the business |Automatic stay as of the day of filing and obligation to inform all known creditors. Special rules regarding ongoing contracts regarding delivery/payment

4 The Danish restructuring regime (-s) The new regime: |New rules were decided by the Danish Parliament on 4 June 2010 |Included delegation to the Minister of Justice to set the new regime in force |Expectation that new rules will be in force from 1 January 2011 – but still unknown |Purpose for the new regulation is to make an improved tool for survival of midsize and larger businesses to save jobs

5 The Danish restructuring regime (-s) |The supervisor will be exchanged by a ”restructurer” with more or less the same authority. An authorisation procedure/exam will come in time. |The debtor will remain in control of assets and activities within the restructuring plan under ordinary corporate governance responsibility and liability |Problems of obtaining necessary votes for the final plan will be solved through improved voting procedures |In practise problems will occur in consequence of extensive use of floating charges