A decision-making flow chart illustrating the process is as follows: Secondary Viability Assessment.

Transcription

1 The various steps are as follows; Step 1 - Gathering Information, Step 2 - Basic (Primary) Viability Assessment, Step 3 - Secondary Viability Assessment, Step 4 Defining Restructuring Options Available to the Lender, and Step 5 Analysis of the Least Cost Solution for the Lender. A decision-making flow chart illustrating the process is as follows: Step 1 Step 2 Step 3 Step 4 Step 5 Gathering Information Basic (Primary) Viability Assessment Secondary Viability Assessment. Identify Restructuring or exit options. Structure Deal based on the Least cost option. Liquidate Liquidate: Determine the best exit option. Other Legal Recourse PL? (/) Viable? (/) Determine debt servicing ability of the Borrower. Define Restructuring Options Select Least Cost Option - pursue Option and Monitor Loan Current but default anticipated due to future negative events. Pre-emptive action necessary? Assess Options: -Additional Security -Guarantees -Change Management -Others Monitor Loan On occurrence of Future egative Event, return to Step 1. Good Loan Action ecessary

2 EXECUTIVE SUMMAR - STEP 1: GATHERIG IFORMATIO This section deals with information gathering for the Lender. Obtaining relevant and accurate information is the obvious starting point to the restructuring process, and provides the foundation upon which the debt restructuring agreement is created. The first priority for the Lender is to gain an understanding of the Borrower s present position and performance, and the Lender s position with respect to other Lenders. Once sufficient information has been gathered (minimum requirements are outlined in the checklists) the Lender is in an informed position to proceed to the next step.

3 Step 1. Information Gathering for Decision Making Step 1 Step 2 Step 3 Step 4 Step 5 Gathering Information Basic (Primary) Viability Assessment Secondary Viability Assessment. Identify Restructuring or exit options. Structure deal based on the Least Cost Option Liquidate Liquidate: Determine the best exit option. Other Legal Recourse PL? (/) Viable? (/) Determine the debt servicing ability of the Borrower. Define Restructuring Options Select Least Cost Option - pursue Option and Monitor Loan Current but default anticipated due to future negative events. Pre-emptive action necessary? Assess Options: -Additional Security -Guarantees -Change Management -Others Monitor Loan On occurrence of Future egativeevent, return to Step 1. Good Loan Action ecessary This section deals with Step 1: Gathering Information. The main areas of focus are: Master checklist, Information requirements and priorities, Determining and assessing sources of information, Roles of Independent Consultants (Third Party Assessments), Standard letters and pro-forma checklist.

4 Flowchart Step 1: All Loans Establish Lender s files are c o m p l e t e a n d a c c u r a t e. (Lending officer) (1) e s Consider legal dept review/advice prior to commencing restructure process. (2) o Refer legal dept for perfection/completion. F o r w a r d Information Request to the Borrower and discuss. (3) (4) Have the critical information items been obtained? If a publicly listed company, obtain information from SET (7) (8) A r e t h e r e a n y s p e c i a l industry skills required in assessing the business? (13) o Is there sufficient information to allow a Lender s Assessment to be conducted, and are staffing resources a v a i l a b l e? (9) (10) o Have recent valuations b e e n p r o v i d e d? (14) Consider engaging: Independent Expert, or Specialist Adviser. (12) e s o e s A r e M a n a g e m e n t willing and capable of supplying the information? Define timetable. (5) (6) o o Prepare an Estimated Statement of Position. (15) (16) o Borrower to explain why not provided. Agree a timeframe for the provision of the information. (11) e s I s t h e L o a n i s l a r g e r than THB 20m. (12) o Consider negotiation options. egotiations successful? o Consider alternative negotiation options at Step 4. A r e t h e r e a n y o t h e r issues which require the involvement of the legal department? (17) Meet and discuss with legal department (18) o Proceed to Step 2. te that this flowchart applies to all Loans, although the minimum information requirements will be reduced for Small Loans as their checklist requirements are reduced. This flowchart does not apply to property loans. The flowchart is intended for illustrative purposes only and is not intended to prescribe the sequence of events that must be followed in every case.

5 Flowchart - Step 1: Property Loans Define the nature of the property. Conduct a property search. Review the property search for registered mortgages. (18) (19) (20) Prepare an Estimated Statement of Position. Is the Lender s position adequately secured? (25) (26) Is the property complete? Ensure adequate property management is in place, and note details of the management contract and contracting details. (39) Obtain the following information: a schedule of tenants including contract terms, expiry, rent arrangement and contributions to overheads, Details of inspections of the property, Details of maintenance performed and contracts in place, Details of permits and licenses required for the property, and those held by the Borrower. (40) (41) (42) (43) Ensure adequate insurance cover is current, and the Lender is noted on the policy. (21) Identify additional collateral options: Personal guarantees, Additional property, Other, ne. (27) Can this information be obtained from a Lender s Assessment? (44) Consider engaging an Independent Consultant, or an IA to obtain this information. (44) Are there any other issues which require the involvement of the legal department before progressing to Step 2? (45) Ensure adequate property management and maintenance is in place to prevent any potential loss of Collateral value. (22) Obtain an assessment/ survey to determine the stage of completion. (28) Has the property been unattended/vacated for more than 6 months. (30) Are there special protection/ preservation requirements? (29) Does the location of the property affect its value or the likelihood of completion? (31) Are you able to establish costs to complete, including obligations and realisable value when complete? If subcontractors are involved in the construction,obtain a schedule of amounts (32) owing and retentions on (33) hand. (34) (35) Meet with and discuss with the legal department and address these issues. (45) If an appraisal/valuation has not been conducted in the last six months, consider commissioning such an appraisal. (23) Document any Environmental Liability issues in relation to the property or activities conducted near or on the property. (24) Consider commissioning an Independent Consultant to obtain the information. (36) Obtain the following information: Are sufficient resources available for completion, Do management hold all required permits and licences for construction. (37) (38) Proceed to Step 2. te that these items should be considered in addition to those detailed in the preceding flowchart for all Loans. The flowchart is intended for illustrative purposes only and is not intended to prescribe the sequence of events that must be followed in every case.

6 EXECUTIVE SUMMAR: STEP 2 BASIC VIABILIT ASSESSMET This section deals with the Basic Viability Assessment of the Borrower. This is an essential step, as due to the urgent nature of any Debt Restructuring, and limited resources available, the Lender must identify whether the Borrower is a candidate for Debt Restructuring at the earliest possible stage. If the Borrower is not a candidate (the Borrower is not viable) the Lender must pursue alternatives other than Debt Restructuring as soon as possible, to minimise the loss to the Lender. For this reason the Basic Viability Assessment is conducted as soon as sufficient information is available.

7 Step 2. Basic (Primary) Viability As sessment of the Borrower Step 1 Gathering Information Step 2 Basic (Primary) Viability Assessment Step 3 Secondary Viability Assessment. Step 4 Identify Restructuring or exit options. Step 5 Structure Deal based on the Least cost option. Liquidate Liquidate: Determine the best exit option. Other Legal Recourse PL? (/) Viable? (/) Determine debt servicing ability of the Borrower Define Restructuring Options Select Least Cost Option - pursue Option and Monitor Loan Current but default anticipated due to future negative events. Pre-emptive action necessary? Assess Options: -Additional Security -Guarantees -Change Management -Others Monitor Loan On occurrence of Future egative Event, return to Step 1. Good Loan Action ecessary This section deals with Step 2: Basic (Primary) Viability Assessment. The main areas of focus are: Financial considerations, n-financial considerations, Filing a bankruptcy or reorganization proceeding, Filing a civil case (including enforcement of Collateral), Abandonment, General guidelines, Guidelines for Corporate, Business and Small to Medium Loans, Guidelines for Small Loans, Guidelines for property loans.

8 Step 2 Basic (Primary) Viability Assessment of the Borrower: All Loans Flowchart Has all information been provided as per Step 1? (1) Are you confident / comfortable the financial information can be relied upon? (2) Is there a positive historic and future cashflow? (5) Are there non - recurring items in the financial forecasts? (7) Refer to Step 1 checklist Discuss with Management. Consider Lender s Assessment or an IA review. ecessary? (3) Are funds being deposited into the Borrower s account in a manner consistent with cashflows? (9) If not, document inconsistencies. Make appropriate adjustments. ( 7) Is the Borrower s organisation part of a trading group? And are you aware of the financial position and trading relationship of the group companies? (10) Conduct Lenders Assessment / IA. Is confidence achieved? (3) Are there any contingencies which may crystallise? (8) Does impact affect viability? (8) Are there indications of fraudulent activities, and is information unreliable? (11) Do any of the following have a negative impact on viability: Ratio analysis, n-financial indicators, Industry stats and trends. (w ith reference to the impact of potential improvements or deterioration of the market on viability) (14) (15) (16) (17) (18) Can you Mitigate? (12) Proceed to Liquidation (Step 4) Assess Alternative egotiation Options. (4) (6) (8) (13) (20) Consider Abandonment. (20 If the business is not viable does the ESOP indicate the costs of alternatives available are less than the value of the business or assets? (19) Is the business viable? (21) Proceed to Step 3 te: The flowchart is intended for illustrative purposes only and is not intended to prescribe the sequence of events that must be followed in every case.

9 Step 2 Basic (Primary) Viability Assessment of the Borrower : Property Loans Flowchart Has a recent appraisal been received? (22) Is the property complete? Are historical and forecast cashflow statements positive before interest and debt repayment? (23) Will the proceeds from sale exceed the costs of sale? (26) Commission an appraisal / survey. (22) Is the property immediately saleable? (24) Document Alternative egotiation Options. (25) Have the costs to complete the project been assessed and verified? (29) Obtain appraisal/ survey and compare. (29) Assess the property to determine appropriateness, saleability, timing and price. (30) Consider liquidation or abandonment unless expected to be held for more than 3 months Do the costs to complete exceed the realisable value of the property, and are there any issues preventing the completion of the project? (31) (32) Are sufficient resources available to complete? (34) Consider Alternative egotiation Options. (33) (36) Discuss with Management alternative sources of labour and materials. (35) Seek an Independent Consultant s advice. (27) Can these be addressed? (27) Identify Environmental Liability concerns. (27) Consider Abandonment. (26) Proceed to Step 3. Does cost of rectification work exceed realisable value of the property? (28) te: The flowchart is intended for illustrative purposes only and is not intended to prescribe the sequence of events that must be followed in every case.

10 STEP 2: ATTACHMET 1 CASHFLOW FORECAST TEMPLATE Table Cashflow Template M o n t h 1 M o n t h 2 M o n t h 3 M o n t h 4 M o n t h 5 Total Sales 1,000 Credit Sales (600) Cash sales 400 Collections from 150 Debtors Total Collections 550 Payments to Suppliers (200) Operating Expenses / (190) Payments Operating cashflow 160 Interest & Finance 300 Expense Taxation Expense 0 et Cashflow (140) Sales Growth % EBIT Growth % Opening Balance et Movement (140) Closing Balance 360

11 STEP 2: ATTACHMET 2 BALACE SHEET (HISTORICAL) TEMPLATE Table Balance Sheet Template (Historical) M o n t h 1 M o n t h 2 M o n t h 3 M o n t h 4 M o n t h 5 Current Assets: Cash & Equivalents Accounts Receivable Inventories Prepaid Expense s n Current Assets: Land & Buildings Plant & Equipment Intangibles Total Assets Current Liabilities: Trade Accounts Payable Other Accounts Payable Other n Current Liabilities Total Liabilities Shareholders Equity

12 STEP 2: ATTACHMET 3 ESTIMATED STATEMET OF POSITIO TEMPLATE T a b l e Estimated Statement of Position as at XX/XX/XX Book Value Going Concern Value Forced Sale Value 1. 0 Assets Subject to Mortgages Pledges A s s i g n m e n t s Plant & Equipment Motor Vehicles Land & Buildings Investment 1. 1 Less: Secured Creditors Surplus / Deficiency to Secured Creditors Unsecured Assets 2. 1 C a s h 2. 2 Accounts Receivable 2. 3 Inventories 2. 4 I n v e s t m e n t s 2. 5 O t h e r C u r r e n t A s s e t s 2. 6 Plant and Equipment 2. 7 Land and Buildings 2. 8 Furniture, Fixtures and Fittings 2. 9 M o t o r V e h i c l e s 2.10 Other Assets 2.11 Total Unsecured Assets S 2.1:2.10 S 2.1:2.10 S 2.1: Priority Creditors 3. 1 E m p l o y e e E n t i t l e m e n t s 3. 2 Taxation Liabilities 3. 3 Total Priority Creditors S 3.1:3.2 S 3.1:3.2 S 3.1: Available to Unsecured Creditors Unsecured Creditors 4. 1 Financial Creditors 4. 2 Accounts Payable and Accrued Expenses 4. 3 Other Current Liabilities 4. 4 Deficiency to Secured Creditors 4. 5 Total Unsecured C r e d i t o r s S 4.1:4.4 S 4.1:4.4 S 4.1:4.4 S u r p l u s / D e f i c i e n c y t o U n s e c u r e d C r e d i t o r s Estimate of Consultants Costs Estimate of Legal Costs Surplus / Deficiency Allowing for Realisation cost Percentage Return to Unsecured Creditors 3.4 / 4.5% 3.4 / 4.5% 3. 4 / 4. 5 %

13 EXECUTIVE SUMMAR - STEP 3: SECODAR VIABILIT ASSESSMET. The Secondary Viability Assessment is an extension of the Basic Viability Assessment. At this point of the process the Borrower s longer term viability is assessed, and the analysis is extended to identify the maximum principal serviceable by the Borrower. This is calculated by reference to the surplus or free cashflow available to service the principal.

14 Step 3. Debt Servicing Ability (Secondary Viability Assessment) Step 1 Step 2 Step 3 Step 4 Step 5 Gathering Information Basic (Primary) Viability Assessment Secondary Viability Assessment. Identify Restructuring or exit options. Structure Deal based on the Least cost option. Liquidate Liquidate: Determine the best exit option. Other Legal Recourse PL? (/) Viable? (/) Determine debt servicing ability of the Borrower. Define Restructuring Options Select Least Cost Option - pursue Option and Monitor Loan Current but default anticipated due to future negative events. Pre-emptive action necessary? Assess Options: -Additional Security -Guarantees -Change Management -Others Monitor Loan On occurrence of Future egative Event, return to Step 1. Good Loan Action ecessary This section deals with Step 3: Debt Servicing Ability of the Borrower. The main areas of focus are: Assessment of debt servicing ability, General guidelines, Guidelines for Corporate, Business and Small to Medium Loans, Guidelines for Small Loans, Ongoing monitoring.

15 Step 3: Secondary Viability Assessment - All Loans Flowchart Does the Basic Viability Assessment indicate the business is viable? (1) Go to Step 2 Perform the sensitivity analysis. (8) Identify purpose of loan and classify/categorise. (2) Have sensitivity analysis been conducted to determine the effect of external/internal forces and change? Identify any sensitivities which affect the forecasts by a significant margin. (8) Adjust the cashflow forecast for: Working capital requirements, Sensitivities, Contingencies, Environmental Liability issues. (9) (10) (11) (12) (13) Discuss and obtain. (17) Consider Alternative egotiation Options. (18) Have suggested restructuring option been received from the Borrower? (17) Discuss the maximum principal the Borrower can service with the Borrower and agree. (18) Separate the debt into fluctuating and core debt. (3) Calculate the maximum principal the Borrower can service based on cashflow projections performed in Step 3. (4) Does the forecast balance sheet indicate that working capital requirements are provided for? (7) Are assumptions to the forecasts adequately documented, and consistent with industry trends? (14) Establish a system of regular monitoring or reporting. (16) Calculate the requirements. (7) Assess the timing of the debt servicing ability of the Borrower depending on the estimated cashflow projections. (19) Can the maximum principal the Borrower can service be sustained by the adjusted cashflows? (15) Document assumptions and reasons why not consistent with industry trends. (14) Proceed to Step 4 Assess the effect of this calculation on the working capital requirements of the business. (5) Can the cashflow of the business sustain the indicated maximum principal the Borrower can service? (6) Recalculate. (6) Recalculate. (15) The flowchart is intended for illustrative purposes only and is not intended to prescribe the sequence of events that must be followed in every case.

16 Step 3: Secondary Viability Assessment - Property Loans Flowchart Is the Property Complete? Has the operating budget obtained in Step 1 been compared to the operating budget of Management? (20) Obtain & review tenancy schedules and rental agreements for expiry terms & determine the property managers capabilities. (21) (22) Does the rental income stream match forecast cashflows? (23) Have funds been set aside for Environmental Liability or structural defects identified? (24) Make amendments as required. (24) Has the final operating budget been reviewed by an Independent Consultant? (25) Commission review. Compare and adjust for significant differences. (20) Review and note details. (22) Discuss with Management. Adequately explained? (23) Is there a positive income stream for a period of at least 1 year? (26) Identify maximum serviceable principal. Proceed to Step 4. (27 (38) Assess Alternative egotiation Options, progress to Step 4. (23) (31) (33) (35) Discuss with Management. Resolved? (29) (30) Has the appraisal been compared to the construction budget? (28) Does the construction budget account for Environmental Liability or structural defects identified? (29) Will adequate resources be available for completion? (30) Does the PV of the funding commitment exceed the PV of the eventual sale proceeds? (36) Establish Funding Commitment and the sources of the funding. (32) Is the Property saleable? (33) Have Management agreed to assist in the completion of the property and do the construction managers have the ability to complete the project? (34) Consider Abandonment / Alternative egotiation Options. (36) Does the PV of the funding commitment and principal exceed the PV of the eventual sale proceeds? (37 Compare and adjust for significant differences. (28) The flowchart is intended for illustrative purposes only and is not intended to prescribe the sequence of events that must be followed in every case.

17 EXECUTIVE SUMMAR: STEP 4 IDETIF RESTRUCTURIG OPTIOS At this stage the Lender understands the Borrower s business, has assessed the Borrower s viability and determined the maximum principal the Borrower is able to service. Using the Lender s knowledge of the Borrower s business and industry the Lender is now able to identify an array of restructuring options for dealing with the non-serviceable debt. The Lender has to evaluate its legal position based upon the existing financing documentation.

18 Step 4. Defining Restructuring Options Available to the Lender Step 1 Gathering Information Step 2 Basic (Primary) Viability Assessment Step 3 Secondary Viability Assessment. Step 4 Identify Restructuring or exit options. Step 5 Structure Deal based on the Least cost option. Liquidate Liquidate: Determine the best exit option. Other Legal Recourse PL? (/) Viable? (/) Determine debt servicing ability of the Borrower. Define Restructuring Options Select Least Cost Option - pursue Option and Monitor Loan Current but default anticipated due to future negative events. Pre-emptive action necessary? Assess Options: -Additional Security -Guarantees -Change Management -Others Monitor Loan On occurrence of Future egative Event, return to Step 1. Good Loan Action ecessary This section deals with Step 4: Defining the Restructuring Options Available to the Lender. The main areas of focus are: What is a good restructuring, Possible components of a debt restructuring, Taxation considerations when restructuring a loan, Inter group loans, Guidelines for Corporate, Business and Small to Medium Loans, Guidelines for Small Loans.

19 Step 4 Flowchart All Loans Go to Step 3 o Has the maximum principal the Borrower can service and the non-serviceable component of the debt been calculated? (1) Consider foreign exchange issues, and calculate the impact to the Lender. (8) Calculate the returns to the Lender (PV), for each restructuring option. (9) Discuss with the Borrower and agree components. If can not agree consider Fall-Back Options. (11) Determine the impact on the restructuring options, and note as a consideration to take into account when determining the restructuring options at Step 5. (14) Determine the impact on the restructuring options, and note as a consideration to take into account when determining the restructuring options at Step 5. (16) Assess each component of the restructuring options for taxation effects. (7) Have restructuring components been discussed with the Borrower to ensure the Borrower is agreeable? (11) o e s Identify and document the available restructuring options. (2) If there are any Creditors who may present a threat to a restructuring agreement, determine the Lender s ability to obtain Creditors support. Is support obtainable? (13) If the loan is a Syndicated Loan, discuss the restructuring options with the Syndicated Lenders, and determine the Lender s ability to obtain their support. Is their support obtainable? (15) Has each component of the debt restructure under consideration been assessed with respect to the impact on the Lender? (3) Assess the impact. (3) Do any of the restructuring plans rely heavily on external forces or contingent events? (6) Document the external forces or contingent events and their impact, and establish Fall-Back Options. (6) Does the unserviceable debt portion in the restructuring proposal offered agree with the Lender s estimate of the unserviceable debt? (11) e s o o o Are there any additional risks associated with any of the proposed restructuring plans? (5) Review the issue of inter-group accounts, and determine the impact to the Lender and the restructuring generally. (12) Proceed to Step 5 (17) Ensure the legality of each component has been confirmed by the internal legal department or Independent Consultant. (4) e s e s Document the risks and their impact, and establish Fall-Back Options. (5) Discuss with the Borrower and agree the unservicable debt portion. (11) The flowchart is intended for illustrative purposes only and is not intended to prescribe the sequence of events that must be followed in every case.

20 Step 4 Flowchart Property Loans Do the restructuring options expose the Lender to any additional liability? (18). Document risks, assess potential costs. Factor these into the PV calculations. (19). Assess the timing of each proposal. Is the operating budget or PV affected by timing issues? (20). Ensure these effects are adequately documented and incorporated into the PV analysis. (21). Proceed to Step 5. The flowchart is intended for illustrative purposes only and is not intended to prescribe the sequence of events that must be followed in every case.

21 EXECUTIVE SUMMAR: STEP 5 STRUCTURE DEAL BASED O LEAST COST SOLUTIO The Lender must consider the financial and non-financial impact of each of the Restructuring options and techniques identified at Step 4. These techniques are combined to structure a deal which is mutually acceptable, and which minimises the cost (loss) to the Lender.

22 Step 5. Analysis of the Least Cost Solution for the Lender Step 1 Step 2 Step 3 Step 4 Step 5 Gathering information Basic (primary) Viability Assessment Secondary Viability Assessment. Identify restructuring or exit options. Structure deal based on the Least Cost option. Liquidate Liquidate: determine the best exit option. Other legal recourse PL? (/) Viable? (/) Determine debt servicing ability of the Borrower. Define restructuring options Select Least Cost option - pursue option and monitor. Loan Current but default anticipated due to future negative events. Pre-emptive action necessary? Assess Options: -Additional Security, -Guarantees, -Change Management, -Others. Monitor loan. On occurrence of Future egative Event, return to Step 1. Good loan no action necessary This section deals with Step 5: Analysis of the Least Cost Solution for the Lender. The main areas of focus are: Considerations in concluding the restructuring plan, Control of loss, Discounted cash flow methodology, Using an appropriate discount rate, Guidelines for Corporate, Business and Small to Medium Loans, Guidelines for Small Loans.

23 Flowchart Step 5 Has the maximum principal the B o r r o w e r c a n s e r v i c e b e e n e s t a b l i s h e d? (1) o Go to Step 4 (1) e s Have the options for dealing with the nons e r v i c e a b l e p o r t i o n o f t h e debt been assessed for impact on the Lender, and the value of the loan? (2) A s s e s s ( s e e S t e p 4 ) (2) e s Have Fall-Back Options been identified and documented in the loan file? (3) Identify and document. (3) Has the internal legal e s department/independent Consultant reviewed all restructuring options and Fall-Back Options? (4) Obtain/ commission a d v i c e. (4) e s Summarise the restructuring options and list in order of least cost to the highest cost (PV). ( o r d e r o f p r e f e r e n c e ) (5) Consider Fall-Back Options and review. If a p p r o p r i a t e e n f o r c e. (10) o Discuss the options and the p r e f e r r e d o p t i o n w i t h t h e Borrower and any Syndicated Lenders, and obtain their support. (10) e s Are there any reasons why the preferred option should not be accepted? (policy or political sensitivities) (11) e s Document and adjust the order of preference list a c c o r d i n g l y. (12) Does the Lender surrender any rights, privileges or benefits under the proposed restructuring? (8) e s D o c u m e n t a n d a d j u s t t h e o r d e r o f p r e f e r e n c e list accordingly. ( i m p a c t o n a c c e p t a b i l i t y ) (9) S e l e c t t h e p r e f e r r e d restructuring option based on the highest PV. (13) H a v e y o u d e t e r m i n e d the risks associated with the various options and t h e i m p a c t o n acceptability? (7) Perform task, document a n d a d j u s t t h e o r d e r o f p r e f e r e n c e l i s t a c c o r d i n g l y. (7) Obtain appropriate authority from superiors in Lending Institution to implement the restructuring option. (14) o C o n s i d e r Fall-Back Options. (14) Do all options meet the minimum requirements for restructuring? (6) e s Go to Step 1 (16) o Document and eliminate option(s) which do not meet the requirements f r o m t h e o r d e r o f preference list. (6) Initiate the approved restructuring option and monitor. (15) Does a Future egative Event occur? (16) The flowchart is intended for illustrative purposes only and is not intended to prescribe the sequence of events that must be followed in every case.

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