Welcome Back

Technical Co-Chairs

Maurice Moses Ernst & Young LLP

Dr. Lars Westpfahl Freshfields Bruckhaus Deringer LLP

General Sponsors

AlixPartners LLPAsset Reconstruction Company (India) LtdBTG Mesirow Financial Consulting Deloitte LLPDerra, Meyer & Partner Financial Times Greenberg Traurig LLPhww wienberg wilhelmPricewaterhouseCoopers

Group of Thirty-Six

AlixPartners LLPAllen & Overy LLPAlvarez & Marsal LLCBaker TillyBegbies Global NetworkBingham McCutchen LLPCadwalader Wickersham & Taft LLPChadbourne & Parke LLPCleary Gottlieb Steen & Hamilton LLPDavis Polk & WardwellDe Brauw Blackstone WestbroekDeloitte LLPErnst & YoungFerrier HodgsonFreshfields Bruckhaus DeringerGoodmans LLPGrant ThorntonGreenberg Traurig LLPHuron Consulting Group LLC

Jones DayKaye Scholer LLPKirkland & Ellis LLPKPMG LLPLinklaters LLPLovells LLPNorton Rose LLPPepper Hamilton LLPPPBPricewaterhouseCoopersRSM Corporate Advisory ServicesShearman & Sterling LLPSkadden, Arps, Slate, Meagher & Flom LLPVantisWeil, Gotshal & Manges LLPWhite & Case LLPZolfo Cooper LLP

Plenary Sessions

• Cross-border co-operation: Current trends

• Storms of the recent past and managing future challenges

Joharah Ballroom

Breakouts 10.00 – 11.15am • A1 Over regulated or laissez-faire?:

Role of the regulators Joharah Ballroom

• B1 Operational restructuring in the MENA region Joharah Ballroom 56

• C1 Effect of the credit crunch on personal insolvency Joharah Ballroom 7

Breakouts 11.45 – 1.00pm • A2 Valuation of distressed entities,

assessing where value breaks and the role of DIP funding: A case study Joharah Ballroom

• B2 Corporate failure – Poor governance or flawed business plans? Joharah Ballroom 56

• C2 Practice management in a recession – How have we coped? Joharah Ballroom 7

Breakouts 2.15 – 3.30pm • A3 Real estate in distress:

Bankruptcy and restructuring cases Joharah Ballroom

• B3 Ponzi schemes: A recent discovery? Joharah Ballroom 56

• C3 Surgeon or undertaker? Dealing with turnaround and burial issues in a credit crunch Joharah Ballroom 7

Cross-border co-operation: Current trends

Cross-border co-operation: Current trends

Chair: Honorable Arthur J. Gonzalez,Chief Judge of the United States Bankruptcy Court, Southern District of New York

The Hon. Mr. Justice Sanjay Kaul,Delhi High Court

Stephen Baister, Chief Bankruptcy Registrar,High Court of Justice

Senior Deputy Judge Jeanette Melchior, Maritime and Commercial Court, Copenhagen, Bankruptcy Division

Breakouts 10.00 – 11.15am • A1 Over regulated or laissez-faire?:

Role of the regulators Joharah Ballroom

• B1 Operational restructuring in the MENA region Joharah Ballroom 56

• C1 Effect of the credit crunch on personal insolvency Joharah Ballroom 7

Over regulated or laissez-faire?: Role of the regulators

Chair: Carlos Mack, White & Case LLP

Johnson Kong, BDO Limited

Luis Manuel C. Méjan Carrer, Immediate Past Chairman of the International Association of Insolvency Regulators

Kathrine Meloni, Slaughter and May

“Over regulated or laissez faire: How much regulation do the financial markets need?“

Dr. Carlos Mack, White & Case

“If you want good security, hire a thief”(Financial recruiter, explaining why disgraced bankers are being

offered new jobs, in “The Power of Yes”)

This presentation is mainly based on the play

“The Power of Yes” by

David Hare, currently showing at the National Theatre, London, as well as on

extensive reading of academic, press, legal, accountancy, economic, ethical, etc publications.

The moral of the story

Alan Greenspan before the crisis: “Markets are imperfect but they bring such benefits that you just have to live with the fact that from time to time they collapse, so you just pick up the bits. The benefits of the market are so great that you have to live with the price.”

“Yes, but Alan, the people who end up paying the price are never the people who get the benefits.”

(By the way, in the meantime even Alan Greenspan has revised his view: “What I said in June (before the crisis) no longer applies.” and: “The whole intellectual edifice (e g markets are decent and wise) has collapsed.”)

Do you recall the good old times of plain vanilla capitalism…

“Capitalism without Bankruptcy is like Christianity without Hell”

How many banks and/or insurance companies have you seen going bust?

The Financial Alchimist Formula: Black-Scholes Model

• Myron Scholes (Nobel Prize in Economics, run LTCM (Long Term Capital Management) and fellow academic Fisher Black algebraic formula to calculate risk by calculating the right price of a future option

• LTCM posted profits of more than 40 percent; ration of borrowing to capital (leverage) at 50 to 1

• Believed to have eliminated risk by a mathematical model: Risk free gambling

• The B-S Model is still used to this day as the internationally recognised formula to calculated risk

• Caveat emptor: „When you model risk, you only model your own risk. You don‘t model for the whole system. That‘s the problem with mathematical modelling.“

The Financial Crisis in a nutshell: “SLUMP”

“SLUMP”

Sub-Prime

Sub-Prime

• Never occurred to banks that the housing market would stop growing or even collapse

• Uncontrolled lending of money to ninjas (no income, no job, no assets)

• Over 1,000,000 mortgage dealers in US

• Cutting and Repacking

The Financial Crisis in a nutshell: “SLUMP”

“SLUMP”

Sub-Prime

Liquidity

Liquidity

• Liquidity circulation stopped on August 9th 2007

• Banks didn‘t have a clue what sort of exotic-toxic stuff they had in their books

• All banks looking at each other and guessing who is holding the bad stuff

• System freezes: No one can/will borrow, no one can/will lend.

• Queen‘s Question at LSE: „Why did nobody see it coming?“ E g in the UK the FSA thought Bank of England was responsible, Bank of England thought it is for the FSA to look into the matter…

The Financial Crisis in a nutshell: “SLUMP”

“SLUMP”

Sub-Prime

Liquidity

Unravelling

Unravelling

• Within Wall Street Lehman Brothers (not Sisters) was one of the big players pooling bad (sub-prime) assets, packaging them in mysterious structures and selling them across the planet.

• Investors (banks and private) around the world were full of this sub-prime crap.

• Once the investment began to fall it did not by a few per cent; quite on the contrary by 50 per cent, 70 per cent and more.

• Lehman should/could have been quietly managed out of business. However, the Fed drew the wrong line: the largest corporate failure in history was like a supernova exploding, leading to meltdown…

The Financial Crisis in a nutshell: “SLUMP”

“SLUMP”

Sub-Prime

Liquidity

Unravelling

Meltdown

Meltdown

• “Too big to fail!”

• Wall Street got its own new kind of socialism: Socialism for the rich. Privatize earnings and socialize losses. Here is where the sense of injustice begins to kick in!

• What‘s the purpose of Government? Everyone will agree on the common formula: To provide the public good. Defence, education, health and a well functioning financial system.

• The government’s job is not only to regulate. Its job is to provide a sound, reliable, decent financial system.

• Reality? Banking system has been off God knows where, doing God knows what!

• Size of damage? 6 trillion USD: 6,000,000,000,000,000,000,000,000…

The Financial Crisis in a nutshell: “SLUMP”

“SLUMP”

Sub-Prime

Liquidity

Unravelling

Meltdown

Pumping

Pumping

• Helicopter money distribution started: Governments around the world throwing money out onto corpses: Fannies & Freddies and AIG and Northern Rock and Hypo Real Estate, and Fortis and Kaupthing, and Landsbanki and not to forget HBOS and the Royal Bank of Scotland

• Pumping tax payers money to pay out bonuses to bankers of de facto bankrupt banks

• and no end in sight…

Who is to blame? Pick your own choice

• Ninjas excessive borrowing• The „Originate-to-Distribute“ Model• The Black-Scholes Risk Model• International Accounting Standards• Fred Goodwin and Dick Fuld, i e Bankers (managers and

supervisory board members) greed, lack of responsability and no fear/prudence

• Bill Clinton, Barack Obama, Tony Blair and Gordon Brown• Hack Paulson (US Treasury Secretary and Banker)• Alan Greenspan, Mervyn King and Jean-Claude Trichet• Rating agencies (AAA)• Investors (private & institutional)• Accountants• Lawyers• OR JUST ANOTHER NORMAL BUSINESS CYCLE OF

GROWTH & DECLINE?

What‘s the remedy? Regulation, stronger Governance rules…

• Liberal Anglo-American approach (still) believing in the self-regulating market forces against the Continental-European socio-capitalism with its firm conviction that capitalism needs regulation

• What sort of Regulation:– Light Touch Regulation? (either you regulate or

you don‘t)– Watchdogs or bloodhounds?

What‘s the remedy? Regulation, stronger Governance rules…

• Stronger Governance rules

• Specific rules for the banking industry:– Early warning system– Cross border crisis management

… and the answer?

“Right now it’s too late for an analysis and to early for a forecast…”

Over regulated or laissez-faire?: Role of the regulators

Chair: Carlos Mack, White & Case LLP

Johnson Kong, BDO Limited

Luis Méjan, Immediate Past Chairman of the International Association of Insolvency Regulators

Kathrine Meloni, Slaughter and May

Breakouts 11.45 – 1.00pm • A2 Valuation of distressed entities,

assessing where value breaks and the role of DIP funding: A case study Joharah Ballroom

• B2 Corporate failure – Poor governance or flawed business plans? Joharah Ballroom 56

• C2 Practice management in a recession – How have we coped? Joharah Ballroom 7

Microsoft Office PowerPoint 97-2003 Pres

Valuation of distressed entities, assessing wherevalue breaks and the role of DIP funding: A case study

Valuation of distressed entities, assessing where value breaks and the role of DIP funding: A case study

Chair: Robin Spencer, Lovells LLP

Neil McCauley, The Commercial Bank of Qatar (Q.S.C)

Dr. Frank Nikolaus, Nikolaus & Co. LLP

Keith J. Shapiro, Greenberg Traurig LLP

MillbyMicron Group Structure Chart

PE Investors

MillbyMicron (Holdings) Ltd

England United States Germany Dubai

£100m (Senior)

£50m (Mezzanine)

Current Indebtedness to Finance Parties

MillbyMicron Ltd (UK)

MillbyMicron Inc (US)

MillbyMicron GmbH (DE)

MillbyMicron (Dubai) Ltd

(DU)

£37.5m £37.5m £37.5m £37.5m

Valuation of distressed entities, assessing where value breaks and the role of DIP funding: A case study

Chair: Robin Spencer, Lovells LLP

Neil McCauley, The Commercial Bank of Qatar (Q.S.C)

Dr. Frank Nikolaus, Nikolaus & Co. LLP

Keith J. Shapiro, Greenberg Traurig LLP

Breakouts 2.15 – 3.30pm • A3 Real estate in distress:

Bankruptcy and restructuring cases Joharah Ballroom

• B3 Ponzi schemes: A recent discovery? Joharah Ballroom 56

• C3 Surgeon or undertaker? Dealing with turnaround and burial issues in a credit crunch Joharah Ballroom 7