1. 1 A Romanian Turnaround Perspective Valeriu Nistor Managing Partner SOAR Management si Investitii Romania June 11, 2010

2. 2 Current situation Overview of the main actors Regulatory framework Key challenges OUTLINE

3. 3 Total value of non-performing loans as % of total loans Current situation

4. 4 Total number of companies that entered insolvency procedures Current situation

5. 5 Unavoidable capital destruction Current situation

6. 6 Great deal of uncertainty and lack of decision making/expertise Current situation

7. 7 Overview of the main actors

8. 8 Banks and leasing companies Suppliers Authorities Labor Judicial administrators Consultants Turnaround firms (in very short supply) Sources of capital Overview of the main actors

9. 9 Insolvency Law 85/2006 Key player: judicial administrator Two main types of procedures: Common procedure Simplified procedure Hurdle claim of EUR 7,500 for filling an insolvency petition Four classes of claims: Secured claims Budgetary claims Unsecured claims from essential creditors Other unsecured claims The reorganization plan proposed by: The debtor The judicial administrator The creditors holding together at least 20% of the claims Regulatory framework

10. 10 Large number of stakeholders with conflicting interests Very slow decision making Shortage of turnaround practitioners Limited experience and history of successful reorganizations Lack of turnaround financing (banks, private investors, investment funds etc) Key challenges

11. 11 Valeriu Nistor Managing Partner SOAR Management şi Investiţii S.A. 9 Tokio Street, 011765 Bucharest, Romania T : +40 31 102 57 46 F : +40 31 102 57 47 E : valeriu.nistor@soar.rovaleriu.nistor@soar.ro W: www.soar.ro CONTACT