Cerberus Global NPL Fund, L.P.

1 European Opportunity: Key Drivers of Transaction Volume Changes to Foreclosure Processes Foreclosure processes have been shortened in some countries, such as Italy Measures introduced in Italy aiming at reducing the length of judicial Measure Implemented Court Auction Minimum Prices: Judicial enforcement proceedings have previously multiple auctions before collateral could be sold. Courts are now able to fix a minimum sale price the collateral to be sold, up to 75% of the auction base price. Court Valuation (CTU): The Court appraiser will be now be paid in half ond the valuation is released, and will receive the other half of his compensation once the asset is sold in auction. Out-of-Court Enforcement: Lenders and borro under which, on a payment default, the assets transferred to it automatically Liquidation Proceedings: Where a debtor is subject to a bankruptcy procedure, there is now a 2 year deadline by which the asset liquidation must be complete, unless the insolvency administrator seeks court approval to extend. The insolvency administrator is also to prepare the liquidation plan within 6 months of the insolvency declaration. P 2016 (1) Source: PWC research, "The Italian NPL Market", December 2017. Proprietary and Confidential | Not for Further Distribution rrowers can make a repossession arrangement in advance will be able to exercise a right to have title to real estate Marciano"). Technological Enforcement Filing: An on-line database has been set up, linking national insolvency registers, containing relevant information on all court-ordered real estate enforcement sales and insolvency and Ce insolvency filings. nk DC State Pestment Boa cesses: 28 Effect on Process Reduces the number of auctions needed to liquidate assets Incentivizes court appraisers to assess values in line with market levels Enables a lender to gain faster access to the value of the collateral Reduces the costs and time associated with a foreclosure Increases transparency cerberus

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