1. New Legislative Developments for Non-Banking Financial Institutions Matei Florea 12 November 2009

2. 2 The Recent Past – A Time for Change The recent past has been rather turbulent for leasing companies and their clients, with changes abounding in legislation, practice and market conditions. Some of the legislative changes include: –re-enactment of the requirement for court approval of enforcement proceedings –changes to insolvency laws –clarification of the provisioning regime applicable to IFNs

3. 3 The Response of Leasing Companies Leasing companies have ramped up efforts to adapt to the changing environment by: –setting up specialised in-house client monitoring departments –strengthening their debt collection teams and procedures –lobbying for regulator involvement (e.g. regarding the booking of provisions) –helping their clients restructure existing leasing facilities

4. 4 Debt Restructuring – The Key Questions Is there something to be saved? Is it not too late? Is there good faith?

5. 5 Pre-insolvency restructuring Key vocabulary: –steering committee –standstill agreement –due diligence –restructuring agreement –claw-back provisions

6. 6 Other Options When pre-insolvency debt restructuring is not an option: –make a plan –declare an event of default –start enforcement actions –initiate insolvency proceedings –consider criminal law charges and any other means of pressure

7. 7 Restructuring within insolvency automatic stay – exemptions available proceedings directors’ position reorganisation plan creditor cram down – defenses sale of (non-core) assets

8. 8 Multi-jurisdictional insolvency Council Regulation (EC) no. 1346/2000 on insolvency proceedings –main proceedings based on concept of “centre of main interests” (COMI) –territorial or secondary proceedings

9. 9 No cookie cutter solution There is no one size fits all solution Each situation will have to be dealt with individually

10. 10 Thank you! Questions?