1. INSOLVENCY & RESTRUCTURING FORUM Mock Creditors Meeting Presenters:

2. INSOLVENCY & RESTRUCTURING FORUM Marlborough Company Operating > 20 years but recently encountered financial difficulties Mr. Malt unwilling to invest additional monies 50 employees: paid to date / most of vacation pay current No reviewable or undervalued transactions

3. INSOLVENCY & RESTRUCTURING FORUM Terms of the Division I Proposal Chill Bank: payment to continue per current agreement Deemed trust: payable within 6 mo. of acceptance by court Unsecured creditors: dividend of 20% of amount owed as of filing date / 4 installments / 1 st due 12 mo. after payment of deemed trust amounts $25,000 fee to be taken from monies within the terms of the proposal

4. INSOLVENCY & RESTRUCTURING FORUM List of Creditors of the Malborough Company The company has the following creditors according to Mr. Malt: Revenue Canada$ 125,000 deemed trust / $ 300,000 (arbitrary GST amount) Suppliers$ 400,000 Important supplier$ 350,000 Critical Supplier X$ 25,000 (only one supplying a specific item) Rent$ 75,000 (landlord is a company controlled by Mr. Malt) Agreed to file the entire claim as an unsecured creditor. Chill Bank$ 500,000 (secured creditor on various pieces of equipment) Your valuation is $200,000. Chill Bank$ 250,000 (line of credit secured by inventory) Your valuation is $50,000. Mr. Malt$ 200,000 (injection of capital by the director) Agreed to forego payments until the completion of the terms

5. INSOLVENCY & RESTRUCTURING FORUM With respect to the trustee’s report on the proposal, should the issue of the theft have been mentioned within the report sent to all creditors? A.There is no obligation to mention this issue in the report. It is sufficient to mention it verbally at the meeting of creditors. B.Yes, the trustee has an obligation to mention it on the trustee’s report. C.Considering that all assets fall under the security of Chill Bank, the Bank is the only creditor that needs to know about this issue.

6. INSOLVENCY & RESTRUCTURING FORUM How should the trustee deal with the proof of claim of Mr. Malt’s ex-wife? A.Accept the claim for $100,000 (original amount owed) as the deed is silent on any interest on the loan. B.Accept the claim for $200,000. A brief calculation of the legal interest rate indicates that $100,000 is reasonable for the duration of the loan (10 years). C.Accept the claim for $75,000. Obtain proof of payment from the debtor company later.

7. INSOLVENCY & RESTRUCTURING FORUM With respect to the request to suspend the meeting of creditors from Mr. Important Supplier – what should the trustee do? A.Suspend the meeting of creditors for 15 minutes. B.Suspend the meeting of creditors for one week. C.Obtain a resolution from the creditors authorizing the postponement of the meeting of creditors. D.Start the meeting regardless of the request from Mr. Important Supplier.

8. INSOLVENCY & RESTRUCTURING FORUM With respect to the vote, do you let CRA vote on its $ 300,000 arbitrary claim? A.Yes B.No

9. INSOLVENCY & RESTRUCTURING FORUM As the designated trustee of the estate, do you: A.Reduce your fee to the level acceptable to CRA and the other creditors. B.Refuse to reduce your fee.