1. Legal Vice Presidency The World Bank Seventh Multinational Judicial Colloquium on Insolvency Cape Town, South Africa, March 17-18, 2007 SURVEY Insolvency Practices Alternative Dispute Resolution in Insolvency

2. Legal Vice Presidency The World Bank Seventh Multinational Judicial Colloquium on Insolvency Cape Town, South Africa, March 17-18, 2007 ALL REGIONS REPRESENTED 6 Africa (Sub Sahara) 3 Eastern Europe & Central Asia 3 East Asia & Pacific 5 Latin America & Caribbean 1 North Africa & Middle East 1 South Asia

3. Legal Vice Presidency The World Bank Seventh Multinational Judicial Colloquium on Insolvency Cape Town, South Africa, March 17-18, 2007 1 South Asia Pakistan 1 North Africa & Middle East Tunisia 3 East Asia & Pacific China, Malaysia, Nepal 3 Eastern Europe & Central Asia Azerbaijan, Croatia, Poland 5 Latin America & Caribbean Argentina, Brazil, Chile, Dominican Republic, Paraguay 19 COUNTRIES REPRESENTED 6 Africa (Sub Sahara) Burkina Faso, Cameroon, Nigeria, Senegal, Tanzania, Uganda

4. Legal Vice Presidency The World Bank Seventh Multinational Judicial Colloquium on Insolvency Cape Town, South Africa, March 17-18, 2007 Non-Insolvency Consensual Resolution 33 % Routine standard operating procedures for lawyers 50 % Court encouraged 22 % Rule mandated 17 % Other Mechanisms encouraging negotiated settlement

5. Legal Vice Presidency The World Bank Seventh Multinational Judicial Colloquium on Insolvency Cape Town, South Africa, March 17-18, 2007 Non-Insolvency Consensual Resolution 79% Arbitration 79% Mediation 26% Other 00% None Alternative dispute resolution mechanisms

6. Legal Vice Presidency The World Bank Seventh Multinational Judicial Colloquium on Insolvency Cape Town, South Africa, March 17-18, 2007 Non-Insolvency Consensual Resolution 27% Judges have power to order parties to undergo mediation. Judges power to order parties to undergo mediation

7. Legal Vice Presidency The World Bank Seventh Multinational Judicial Colloquium on Insolvency Cape Town, South Africa, March 17-18, 2007 Arbitration and Insolvency Commencement of insolvency proceedings & arbitration 28% Law establishes relevance that commencement of insolvency proceedings may have for arbitration. 26% Commencement of reorganization proceedings influence the validity of previously-concluded arbitration agreements. 37% Commencement of liquidation proceedings influence the validity of previously-concluded arbitration agreements.

8. Legal Vice Presidency The World Bank Seventh Multinational Judicial Colloquium on Insolvency Cape Town, South Africa, March 17-18, 2007 Arbitration and Insolvency Arbitration agreements entered during insolvency proceedings Liquidation proceedings: –11% Debtor may conclude arbitration agreements enforceable against the estate. –61% Insolvency administrator may enter arbitration agreements concerning assets of the estate. Reorganization proceedings: –53 % Debtor may conclude arbitration agreements enforceable against the estate. –58% Insolvency administrator may enter arbitration agreements concerning assets of the estate.

9. Legal Vice Presidency The World Bank Seventh Multinational Judicial Colloquium on Insolvency Cape Town, South Africa, March 17-18, 2007 Arbitration and Insolvency Matters Capable of Settlement by Arbitration 74% Law generally defines matters capable of settlement by arbitration. 33% Law defines matters capable of settlement by arbitration in insolvency proceedings. 67% The insolvency court jurisdiction does not exclude arbitration of issues arising in insolvency proceedings. Matters capable of settlement by arbitration: –17% Verification disputes. –33% Unsecured claims. –17% Labor conflicts. –42% Claims against third parties filed by the insolvency administrator.

10. Legal Vice Presidency The World Bank Seventh Multinational Judicial Colloquium on Insolvency Cape Town, South Africa, March 17-18, 2007 Arbitration and Insolvency Application of stays Liquidation proceedings: –35% Stay applies to arbitration agreements when no arbitral proceedings have been initiated. –47% Stay applies to arbitral proceedings initiated before commencement. Reorganization proceedings: –41% Stay applies to arbitration agreements when no arbitral proceedings have been initiated. –47% Stay applies to arbitral proceedings initiated before commencement.

11. Legal Vice Presidency The World Bank Seventh Multinational Judicial Colloquium on Insolvency Cape Town, South Africa, March 17-18, 2007 Arbitration and Insolvency Frequency of use of arbitration to resolve insolvency disputes Never Infrequently Sometimes Frequently

12. Legal Vice Presidency The World Bank Seventh Multinational Judicial Colloquium on Insolvency Cape Town, South Africa, March 17-18, 2007 Mediation and Insolvency Use of mediation in insolvency proceedings 41% Legislation allows use of mediation to facilitate insolvency proceedings. 35% Legislation allows use of mediation as a mechanism to facilitate “workouts”. 29% Legislation allows use of mediation to solve disputes arising in the course of insolvency proceedings.

13. Legal Vice Presidency The World Bank Seventh Multinational Judicial Colloquium on Insolvency Cape Town, South Africa, March 17-18, 2007 Mediation and Insolvency Insolvency Courts Power to Order Parties to Undergo Mediation 22% have power to order parties to undergo mediation.

14. Legal Vice Presidency The World Bank Seventh Multinational Judicial Colloquium on Insolvency Cape Town, South Africa, March 17-18, 2007 Need for Reform Expansion of Arbitration & Mediation in Insolvency Proceedings

15. Legal Vice Presidency The World Bank Seventh Multinational Judicial Colloquium on Insolvency Cape Town, South Africa, March 17-18, 2007 SURVEY Insolvency Practices Alternative Dispute Resolution in Insolvency