The Epiq Difference Global Administrative Services
Introduction......................................................... Icelandic Banks...................................................... General Motors....................................................... CIT Financial......................................................... Lehman Brothers..................................................... Major U.S. Bank...................................................... Major European Bank.................................................. Fortune 100 Complex Claim Process...................................... MF Global / SIPA Liquidation............................................ Satélites Mexicanos................................................... 1 2 3 5 6 7 9 10 11 13
INTRODUCTION Create order out of chaos With teams experienced in providing a full range of services and solutions to manage a variety of large administrative projects, Epiq creates order out of chaos. Adaptability: We offer a flexible, consultative approach tailored to your company s needs. Whether in corporate restructuring, foreclosure services, corporate due diligence or initial public offerings, we have the expertise and technology to successfully complete every assignment. Quality: Driving exceptional quality and value requires exceptional talent. Epiq is the standard everyone measures themselves against based on our unparalleled experience managing large and complex administrative projects. Experience: Our 20-year-long track record of success speaks to our unyielding commitment to deliver exceptional service and drive real results for our clients. Technology: Our comprehensive portfolio of flexible, high-performance software solutions allows you to choose just the right mix of technology and services to meet the needs of your project. Whatever the size and scope, we deliver the tools you need efficiently, reliably and cost-effectively. Security: Epiq delivers results in the most secure, risk-free fashion possible. All of our software, hardware, databases and physical locations have multiple layers of security and our processes are engineered to ensure complete defensibility. SERVICES Epiq s comprehensive advisory services include: Claims processing and management Reconciliation support Public security balloting and tabulation Forensic and data preservation Multilingual call center support Printing and publication noticing Litigation support ediscovery services Virtual data room services Due diligence services Software development Disbursements 1
ICELANDIC BANKS Epiq helps Iceland s largest banks after historic collapse Iceland s three largest banks Glitnir, Kaupthing and Landsbanki failed in 2008, sending the Icelandic economy into disarray. Before the dust had settled, Epiq was brought in to advise and assist each bank in crafting and implementing consistent procedures that would govern the filing, transfer and reconciliation of claims asserted by beneficial owners of program securities issued by the banks. Epiq successfully: Developed, along with the global depositories, Euroclear and Clearstream, the blocking procedures used to facilitate the filing of claims by beneficial owners of program securities Served as primary intermediary for the Icelandic banks in interactions with the global depositories, banks, brokers and beneficial owners Drafted instructions and notices that were distributed via the global depository noticing systems Crafted detailed responses to frequently asked questions Created and implemented the claims transfer process in close consultation with the Winding-Up Board/Committee Assisted in the reconciliation of program securities claims 3 25,000 50,557 3,718 Major multinational banks in moratorium Total number of benefi cial owner claims fi led against Icelandic banks Total population of claims asserted against the Icelandic banks Claim transfer requests submitted to Epiq for processing (YTD) 6,551 Notices issued Through understanding of claims management, transfer procedures, global public securities issues and the inner workings of the global depositories, Epiq succeeded in establishing a clear, complete and comprehensive claims filing and transfer process for each of the Icelandic banks. 2
GENERAL MOTORS Epiq enables company to complete the world s largest IPO General Motors employed Epiq s specialized expertise in call center and administrative management services to complete portions of its pre-initial public offering s (IPO) directed share program (DSP). Epiq implemented a three-phase process to manage communication to and from more than 580,000 DSP-eligible participants. From complete pre-registration compliance and eligibility verification to round-the-clock call center staffing, programmatic data point matching and tax form processing, Epiq successfully managed critical aspects of the DSP for its client. Epiq s services included: Pre-registration document mailings, deadline management and follow-ups Complete eligibility verifications Programmatic data point matching, anomaly investigation and resolution Round-the-clock, bilingual call center staffing Tax form processing Financial institution communication 580,000+ Qualifi ed participants 2 Countries (U.S. and Canada) 2 Languages (French and English) 93,000 Program registrants 54,000 Online registrants 39,000 Paper registrants 35,459 Incoming calls The company successfully completed its directed share program. Communications were conducted efficiently, cost-effectively and according to U.S. and Canadian business and financial regulations. Ultimately, both the company s IPO and DSP were successful. 3
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CIT FINANCIAL Epiq helps CIT Financial emerge from bankruptcy in 40 days When faced with the daunting task of completing a prepackaged bankruptcy with an inordinately high number of bond issues in a highly compressed timeline, CIT Financial called Epiq for solutions. Epiq created a custom workflow, limiting vote options and tabulating results in a highly efficient, electronic fashion, and worked closely with the Depository Trust Company (DTC) to implement the securities-tendering process in DTC s electronic exchange system. A selection of services rendered includes: 40 Days spent in Chapter 11 300+ Bond issues for vote Process engineering and deadline and project management Wall Street, broker and bank communications via online, call center and in person Master ballot engineering Secure coding and programmatic data matching for validation, reconciliation and tabulation Flexible staffing, extended night and weekend hours during midnight expirations 145,000+ 3 Number of bondholder participants Months from proposal to distribution Epiq helped CIT make an informed, strategic decision for a prepackaged restructuring. Epiq s extensive preparatory work, specialized process engineering techniques, expertise in balloting and solicitation, and hands-on approach to management assisted in CIT s unprecedented two-day emergence from Chapter 11 following plan confirmation. CIT emerged from Chapter 11 in only 40 days, to make a complete, seamless and successful distribution exchange to more than 145,000 bondholders. 5
LEHMAN BROTHERS Epiq Systems takes on largest Chapter 11 in history Lehman Brothers, with $600 billion in assets, more than 875 securities, 6,000 program securities and 67,000 proofs of claim, contracted with Epiq to implement an innovative process to handle the extremely high volume of claims and programs securities. Epiq worked closely with Lehman, Lehman s counsel, trustees, creditors and the international depositories to develop and implement: A specialized bond position-blocking process Custom software for online claims filing Communications channels for creditor and sale parties Specialized and high-touch bar date process High-volume noticing processes $600B Assets 875+ Securities 67,000 Proofs of claim 24/7 Service availability 1 Successful, court-approved administrative process After successfully navigating what could arguably be the most complex, high-volume bar date process in history, Lehman Brothers Holdings, Inc. was well positioned to ballot their Chapter 11 plan, a plan that ultimately was approved by an overwhelming majority of its creditors. 6
MAJOR U.S. BANK Epiq saves bank time and money by building efficiencies into high-volume, document-intensive processes on a tight timeline In January 2010, a very large U.S. bank needed to commence enforcement actions on thousands of defaulted loans. The bank s law firm contacted Epiq to assist. Epiq was able to: Ease the administrative burden of the process and create efficiencies by creating a centralized custom software solution (LoanMatrix ) that addressed the needs of both the bank and the law firm Scan the loan files Review the files for core defects Review bankruptcy dockets to ensure compliance with the automatic stay Work with counsel to notice the borrowers Create customized tasks to speed workflows and define a standard process for each loan file 10,000+ 1 25 Loans against raw property in a judicial foreclosure state Custom-built workfl ow application designed specifi cally to process loans Approximate percentage of time saved on each loan sent through Epiq s LoanMatrix (compared with manual administration) This process significantly reduced the cost per loan filed while providing efficiencies to the process and customized reporting as required by the bank. 7
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MAJOR EUROPEAN BANK/DUE DILIGENCE PROCESS High-volume due diligence successfully conducted in compressed time frame In June 2011, a major European bank and law firm approached Epiq with a new but similar problem, as discussed in the U.S. bank case study, so Epiq crafted a new solution based on a variant of the LoanMatrix software platform. The distressed bank had to sell $10 billion of loans representing 248 loans and thousands of pieces of U.S. real estate in various loan pools. A team of 200 attorneys and relationship managers was built to conduct due diligence on the loan documents within a matter of weeks. Epiq s LoanMatrix was used to: Host the million-plus pages of documents Tag each asset with key information, easily customizable for each engagement Capture key information about each loan Develop workflow around the review process and report on review status Complete questionnaires online or upload to each electronic loan file, and make available to reviewers and bank in one centralized location In addition, thousands of pages of new documents were being added each day. Those new documents were seamlessly uploaded to LoanMatrix, and each reviewer was notified of the update. In prior exercises, the entire group of 200 attorneys would have been notified every time a single document was received. This process alone saved thousands of dollars in legal expense and allowed the team to meet their deadlines and achieve their goals. $10B Total loan worth 248 Real estate loans 200 Attorneys 1M+ Pages of documents 30% Cost savings compared to traditional due diligence processes LoanMatrix and the customized solutions that were put in place around it saved the client considerable time and money and allowed these complex transactions to happen without a hitch. 9
FORTUNE 100 COMPLEX CLAIM PROCESS Epiq administers large notification and refund program Epiq assisted a U.S.-based multi-billion dollar company with a large-scale complex claim program. The company marketed and sold a product later found to be defective. The defect was found to be damaging to property, and the company chose to replace or refund the value of the property that had been damaged beyond repair, as well as pay for maintenance to property that had been moderately damaged. The company also wanted to maintain open communications with all of its claimants in order to minimize reputational damage. 25,937 customized claim forms sent 23,812 claims received and processed Support claim resolution process of more than 25,000 claims Prepared customized notice letters for unique claimant types Maintained data for refund program Support reconciliation process and professionals involved 25,000+ Claims 23,800+ Claims received and processed 25,000+ Claim forms customized and sent Although claims and refunds are still ongoing, by contracting with Epiq, the company minimized reputational damage, maintained open lines of communication, retained customers and minimized administrative overhead. 10
MF GLOBAL/SIPA LIQUIDATION Epiq successfully manages high-volume claims process for MF Global Inc. Epiq supports the trustee in the liquidation of MF Global Inc., the U.S. broker-dealer of MF Global, a major global registered futures commission merchant and derivatives broker. Epiq professionals work closely with the trustee s professional team to manage the claims process and support their expedited initiative to issue letters of determination on the claim population soon after the claim bar date. 75,000 proofs of claim notices sent to former customers and creditors More than 30,000 claims received and processed Custom online claims filing software utilized Support trustee s staff in expedited claims processing High-volume noticing processes Bilingual call center staffing Support in the creation and mailing of more than 12,000 letters of determination 75,000 Proofs of claim notices sent 30,000+ Claims received and processed 12,000+ Letters of determination All former customers and creditors received proofs of claim notices, with more than 30,000 claims received and processed. More than 12,000 letters of determination were issued within a month of the claim bar date. 11
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SATÉLITES MEXICANOS Satélites Mexicanos conducts successful rights offering, emerges from Chapter 11 protection on schedule Satélites Mexicanos (SatMex), a Mexico City-based company with a large number of U.S.-based bondholders, needed to restructure its debt. The company opted for a pre-packaged solicitation and plan of reorganization and had to meet an extremely aggressive timetable for plan confirmation and distributions. SatMex required an unusually structured treatment election and rights offering. Voting options were tabulated in a highly specialized fashion. In order to ensure bondholders were able to make the most well-informed decisions, the election forms were not set to expire until after the pre-packaged solicitation was complete. Epiq Systems worked on-site in Mexico City with SatMex s leadership, outside counsel and financial advisory firm to engineer a process that took into consideration Mexico-specific privacy and safety concerns. Epiq managed the noticing and solicitation processes, ensuring translations were accurate and appropriately nuanced. 2 Languages 2 Months from launch to confi rmation 1 Aggressive timetable With Epiq s assistance, Satélites Mexicanos progressed through a Chapter 11 proceeding efficiently and effectively. Epiq s hands-on consultative approach, ability to custom-engineer processes and multilingual support assisted in SatMex s extremely successful rights offering. Ultimately, the rights offering funded SatMex s successful and timely emergence from Chapter 11. 13
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