1. Tom Kavanagh kavanaghfennell 25th September 2013 CORPORATE RESTRUCTURING SUMMIT

2. Trends & Developments Large Property Sales IBRC Debt Restructuring Personal Insolvency Outlook for the next 12 months Contents

3. Predicted 2013 total: 1,300+2012 overall total: 1,684 *statistics do not include personal asset receivership www.insolvencyjournal.ie Year on year decrease of 14% Year on year decrease of 20%

4. Receiverships – Differing strategies Examinership – B&Q, Pamela Scott, Sunday Business Post, Barna Waste IBRC Liquidation Portfolio Sales – Aspen, River, IBRC, Ulysses, Arc, O’Flynn Servicing Contracts – Certus, Capita, Pepper PE firms, REITs + QIFs Spike in Fixed Asset enforcement Charles Allen ‘Trust’ Trends & Developments

5. Treasury Portfolio - €306m Clancy Quay- €82m Vet College- €22m Gemini Portfolio- €65m Bishops Square- €65m River Island Building - €40m La Touche House- €35m 4 Apartment Blocks- Capreit - €42m Marker, Ritz Carlton, Burlington, Trinity Plaza Large Property Sales

6. Debtor purchase, PE firms or NAMA Valuation is the key Debtors – No certainty on banking counterparty Further uncertainty for trading businesses INBS book - NAMA? IBRC

7. Borrower Perspective Private Equity Exiting Banks Pillar Banks Loan Service Providers Debt Collection Agencies Bank’s Perspective Long-term market participants Capital Efficiency Restructure is easier on balance sheet Future interest income Debt Restructuring

8. The Return of Capital Dublin awash with hungry money Provides Banks with option of taking market Exiting Banks / Bad Bank run offs / NAMA Vendor appetite for portfolio sales Models Senior Debt profile structured around free cashflow Residual debt: Stretch and forgive, equity fee notes, zero coupon parking Margin debate (higher senior debt v interest rate return) i.e. €5m @ 4% margin = €5.73m @ 2%

9. Debt Restructuring Issues and Obstacles Family Homes Documentation and Fulfilment Provisioning inadequacy Borrower fatigue Contagion fear

10. Personal Insolvency Insolvency Service of Ireland Formal Arrangements - Banks not favourable? Borrowers left with Hobson’s choice Consensual restructuring or Bankruptcy Exception – multi banked borrowers

11. Higher volume of asset sales Portfolio Sales to pick up IBRC outcome Restructuring – real progress Surge in Fixed Asset enforcement Examinership ‘Light’ Personal Insolvency – fall out Sentiment – inching forward Outlook For Next 12 Months