TRESU Q3 2023 Financial Report

Risk factors (continued) Preventive restructuring TRESU Danish bankruptcy law also contains the possibility of a preventive restructuring. Initiating preventive restructuring is available if a debtor has a likelihood of being insolvent, whereas opening of restructuring or bankruptcy proceedings requires that the debtor is in fact insolvent, i.e. unable to pay its debts as they fall due (a liquidity test and not a balance sheet test), unless such inability is merely temporary. Consequently, an in-court preventive restructuring procedure may be initiated if a debtor is insolvent or has a likelihood of being insolvent i.e., preventive restructuring is available also prior to the debtor actually becoming insolvent (by failing the liquidity test, cf. above). A petition for such proceedings may only be filed by the debtor itself, and the purpose of such proceedings can 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 iii) to implement other measures that individually or together with other parts of the restructuring will mitigate the insolvency. However, the legal implications of a preventive restructuring highly depends on which form of preventive restructuring the debtor elects to petition for - whether the debtor petitions for a preventive restructuring with a stay on individual enforcement or a preventive restructuring without a stay on individual enforcement. In a preventive restructuring without a stay on individual enforcement, there is no requirement for appointment of a restructuring administrator or information to the creditors about initiation of the preventive restructuring proceedings. No "reference date" is established and thus unsecured debt accruing or obtained after commencement of such proceedings will not get priority to payments to be made to unsecured creditors. In a preventive restructuring with a stay on individual enforcement, appointment of a restructuring administrator is mandatory, the creditors will be notified about initiation of the preventive restructuring proceedings, initiation of the proceedings will create a "reference date" enabling unsecured debt accruing or obtained after commencement of such proceedings with the approval from the administrator to get priority to payments to be made to unsecured creditors. In a preventive restructuring with a stay on individual enforcement, commencement of the preventive restructuring proceedings will prevent unsecured creditors from enforcing their rights individually and imposes a general ban on enforcement of security. Consequently, disposing charged assets of the debtor requires the involvement and approval by the restructuring administrator. The preventive restructuring proceedings will also not affect the rights of the creditor to submit a petition for restructuring or bankruptcy (subject to the debtor being deemed insolvent and the creditor having claims against the debtor). 67 67

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