Trends in Technology & Impact to Distress Market while we are generally known as a Bankruptcy Claims & Noticing Agent and SmartRoom secure virtual dataroom provider, we are an information management firm dedicated to leveraging secure technology to collect, manage and deliver information in formats meaningful to our customers and resulting in timely, accurate and informed decision making. Presented By: Lorenzo Mendizabal

Technology Advances Emerging API blocks are accelerating connectivity and integration Cloud based computing, big data, artificial intelligence, blockchain, chatbots will all have a transformative effect on distressed industry Creation and complete customization of software to manage complex data projects is much easier A paradigm shift will generate new winners and losers API blocks assist with integration of various software and systems and enable the connectivity that we enjoy. For example, locating a restaurant close to your location. API – application programming Interface – subroutines, definitions, protocols Simplifies connections between various software components. Blockchain – a list of records which a linked and secured using cryptology. Allows multiple computer to agree to the state of a ledger eliminating the need for meddle people like banks or Paypal. Verifies trustworthiness. Ability to store and search through more date quickly. BIG Data AI – expedite analytics, learning and problem solving by machines Intelligent routing of information (statistical methods, cognitive computing) language translation, speech recognition, decision making Chatbots – Artificial conversation entity ( Siri, Alexa) Scripted transactions Blockchain – securing transactions Big Data – ability to querry and search large chunks of data. Identify similarities, anomalies and analyze data.

Mergers and Acquisitions Historically - war rooms, paper driven, limited field of potential investors Today - virtual data rooms now expand the universe of potential purchasers Top VDR platforms provide increased security and software features add control, flexibility and insight Reports on activity, ability to work with financial models and ability to restrict control of documents drive greater efficiency into the M&A process Features of today also include office “on-line” collaboration and financial analysis No more smelly warehouses digging through boxes of paper Document storage in the clouds means that interested people bidding up assets can be all around the world Security a key with respect to certain documents (read only) Separately – important to be able to work with financial models Reporting allows you to determine who are likely the more serious bidders the SmartRoom touted features of today include “office online” collaboration and financial analysis.  As a result of increasing concerns re cyber-security and data breaches, our company is experiencing an increase in general corporate and investment community use cases.  API’s allow practically any corporate data source to be web-accessed, and shared securely.  

Here go my educated WAGS What are things that we will be seeing soon and how will they impact our industry?

Likely M&A Disruption Blockchain eliminates the friction regarding raising capital and will have other interesting applications in our industry AI features can accelerate documents being indexed into appropriate folders for several tracks (financing, insolvency, regulatory) Increased usage of virtual data rooms based on security concerns and ability of VDR platform to connect to other tools Imbedded workflow tools and checklists will make it easier to manage projects with increased efficiency Imbedded tools also increase collaboration within the VDR tool Greater utility for regulatory matters by integrating with operational functions in the ordinary process Blockchain – removing middle persons from transactions is a huge transformative change. Very hard to achieve in established markets but maybe starts in smaller markets. AI – Whether legal research, facilitating form completion, index creation, we are merely tapping into future order of things. Big Data – Access to trends, evidence of what works and what does not, What maximizes returns on assets Chatbot – Live call center people are a thing of the past for most transactions and information requests. In bankruptcy, call are repetitive and relatively simple.

Bankruptcy Process – U.S. Today – paper driven, data available on PACER but clunky (Data divided by districts and key documents come in as PDF’s restricting searching ability) API, optical character recognition, cloud based storage and AI address the challenge of capturing that data and facilitating searching across the massive amount of information Among other things, AI can be used to identify assets classes (value, type, location) New API blocks facilitate alerts and calendaring of hearings and deadlines Good level of transparency but PACER limits progression – future is with other businesses that are compiling bankruptcy data and assisting creditors and professionals access information. Winner will be entity the integrates AI, big Data, API blocks

Bankruptcy Process – U.S. Centralized service registration center Centralized claims platform Chatbots replace human call centers Migrate from paper Migrate to workings in the clouds Collaborate on one platform AI assists in preparation of pleadings Today Claim agents , Financial adviser, debtor with different software applications working on different platforms Greater collaboration on one platform (security and ease) Greater migration from paper notices and claims AI assists in claims recon and pleading preparation

Bankruptcy Process - International Today – dark, no transparency, inefficient and inconsistent Many countries have started moving closer to Chapter 11 model but they still lack transparency in the process E.C. – guidelines and directives starting to instruct all European countries to modernize insolvency process with goals of greater transparency to drive efficiency and garner trust in the system Even countries like France are seeking to implement greater technology and transparency into a more modern insolvency process (Macron/Brexit related to bring more financial institutions to France) U.K. has consistently resisted change but likely to open up process to avoid losing their status as a preferred venue