TRESU Q3 2023 Financial Report

Risk factors (continued) Restructuring TRESU The in-court restructuring procedure is aimed at debtors who are insolvent but where there is a chance that all or part of the debtor's business may be able to continue after the completion of a restructuring. As for the preventive restructuring, the purpose of a formal restructuring process must be to either i) enter into a compulsory composition, thus restoring the debtor's solvency, ii) to transfer the assets or part of the assets under a business transfer to a third party, or a combination of both, and/or iii) to implement other measures that individually or together with other parts of the restructuring will mitigate the insolvency. In broad terms, the in-court reconstruction provides for reconstruction of an insolvent company by transfer of the business in full or in part, by a compulsory composition/moratorium or by a combination of both. During the reconstruction procedure, creditors are restricted in their ability to enforce their claims, but valid and binding security may be enforced under certain conditions. If a restructuring procedure fails, bankruptcy proceedings will be initiated automatically against the debtor. The Danish bankruptcy scheme is based on the fundamental principle of pari passu satisfaction of the debtor's unsecured creditors. However, claims against the debtor are subject to priority ranking, giving first priority to costs incurred during the bankruptcy proceedings, including the fee for the bankruptcy trustee. Second rank is given to claims incurred during preceding restructuring proceedings and other costs incurred with the approval of the reconstructor. Third rank, "privileged claims", are mainly salary claims, including salary income taxes (relating to salary claims being filed) but excluding salary claims from the top management (in Danish: direktører), who are not salaried employees (in Danish: funktionærer). Fourth rank is given to suppliers to the debtor who have, within 12 months of the onset of insolvency, delivered goods to the debtor with the applicable duties prepaid by the relevant supplier, but only (i) as regards certain specifically listed duties, and (ii) to the extent of the supplier's claim for reimbursement of the duties prepaid. After fulfilment, if any, of these priority ranking claims, in the above order, any excess proceeds will be distributed among all ordinary, unsecured creditors. Interest accrued on ordinary, unsecured claims will rank as ordinary claims up to the date of the bankruptcy order, after which date the accrued interest will rank as a deferred claim. Deferred claims include, among others, subordinated loans and penalties. Formal restructuring proceedings can be petitioned for by the debtor or a creditor if the debtor is insolvent. The petition is not published but creditors may attend if they are informed of a court hearing. If the petition is filed by the debtor, the court will immediately issue an order to initiate the proceedings and appoint a restructuring administrator and an accountant. There is no voting procedure in respect of this court decision and no appeal of the decision is possible. Within 4 weeks after commencement of the restructuring proceedings (which period may be extended to up to 8 weeks), the restructuring administrator must present a restructuring plan and after 6-7 months a detailed restructuring proposal (e.g. a sale, a moratorium, a debt reduction, and/or other measures to mitigate the insolvency or likelihood thereof (and any combination of the aforementioned)) must be presented. Both drafts are to be submitted to the creditors who vote on them. If the restructuring plan is rejected, the debtor will not automatically become subject to bankruptcy proceedings (but if the debtor fails the abovementioned liquidity test, the debtor or a creditor may then file for restructuring and/or bankruptcy proceedings). However, if the restructuring plan is adopted, but the restructuring proposal is rejected, the debtor will automatically be declared bankrupt. The maximum duration of a restructuring process is approximately 12 months. If restructuring proceedings are initiated during (or immediately after) preventive restructuring proceedings, the maximum combined duration is also one year. The restructuring plan and the restructuring proposal will be adopted unless turned down by a majority of the creditors in a vote. The voting power of each creditor depends on the amount of its claim. All creditors likely to receive dividend are entitled to vote. Creditors who are likely to be satisfied in full or who are not likely to receive any dividend at all, regardless of the outcome of the vote, are not entitled to vote on the restructuring plan and the restructuring proposal. 68

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