Some statements concerning distressed situations in Europe regarding: Euro-zone with Italy and Greece Financial restructurings and restructurings in operations CMBS, ABS and Asset-Management DocRating and Draftcheck as active Risk-management

1. Distressed & Restructurings - what does it need ?
I participated as a speaker in the DebtWire Forum 2011 and we virtually discussed
refinancing problems of EMEA, Euro and Italy, Corporates, ABS and CMBS
structures concerning residential properties.
The new rating of Italy by Standard & Poors from A+ to A and consequently the
following risks for all Europe, will effect the rating of Italian banks as well.
According to this seminar's speakers the reason for this downgrade is the stagnation
of the Italian economic growth since 1993.
Concerning corporate restructurings I liked the statement of a German Banker
responsible for Corporate Intensive Care: "We should envision both sides of
restructuring: "The financial and the operational side - financial restructurings
without changing the operational side will not help the company in the long run.

2. Distressed & Restructurings - what does it need ?
Being personally involved in Italy, I have to admit, that the bureaucracy
is complex and each procedure related to the government is complicated. -
Often, facing the public administration, the usere, find situations in which the
duration and outcome are uncertain. procedures and rules or rules are not effective
and efficient.
From the German point of view I welcome the patience of Italians concerning wasting
time in ...waiting......for the public administration.
Simple example:
Instead of offering a well structured daily court agenda, all parties involved in that
days cases, have to appear at 8:am to discuss their timeslot...
My conclusion:
Operations restructuring often, are a must, to solve future problems and to
achieve success - even as a government / state.
Concerning the Real Estate CMBS structures in Germany, we find a situation, that
refinancing the next two years is a must (maturity). Asset management for residential
MFH homes has improved so much in the past 2 years that consequently, even if
a refinancing is due - financial institutions will prolongue and strech financing!
This is the opinion of the Panel. ( Interesting concerning Basel III regulation -
Equity requirements ).
Now...are you satisfied with the outcome of this conference?
Not completely?
We stronlgly believe that the participants ( financial institutions / Europe ) should
improve their Risk-Management by integrating not only bond values, but underlying
Asset-data - concerning performance, value and prospective value as well. These
requirements include structured situations or direct loans.
Real-Estate industry needs new standards, which will be defined within the next
couple of years ( see OSCRE - Open Standards Consortium for Real Estate ) and
the integration of all components in a flexible datawarehouse
CONact is answering this question for mortgage loans or generally for Real
Estates with our new consulting service "Draft Check". Draft Check is a primary
stage of a DD (Due Diligence) and part of our "Cash Flow Sync" solution. Draft
Check gives you fast and accurate information on the value and the DocRating of
Real Estate portfolios.
Doc Rating is a Rating regarding quality, integrity and being up-to-date on all
relevant information and files regarding a single Real-Estate or a portfolio. It also
shows deficits and specifics of the engagements that should be evaluated during a
future due diligence.

3. Distressed & Restructurings - what does it need ?
My recommendation:
Only with a good DocRating a Bank / Fund is able to define Pricing and a solid
Exit - strategy !
My experience:
Most of Banks / Funds have an ordinary or even defective DocRating
concerning their assets - and what is worse, they don`t realize this
Example graph of "Draftcheck-Solution"
Are you interested in Draft Check, DocRating or generally on our Consulting and
Interim Services? Comments and feebacks are appreciated - eMail.
CONact is a member of RealEstateInnovation - European
companies in the Real-Estate Industry
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