Plenary panel discussion on how to use new and evolving laws around corporate restructurings to rehabilitate businesses rather than liquidate

1. Creating
transformation
and value through
restructuring

2. Page 2
Moderator Panel
James Deiotte Grant Pattison Michael Dorn Eric Nguessan Clifford J Sacks
Tax leader
EY Africa
CEO and Executive
Chairman
NRG Renew Africa
Managing Director
AlixPartners,
Munich Germany
Partner & Tax Leader
Côte d'ivoire
Partner and Africa
Leader:
Strategic Transactional
Advisory Services
Robert Appelbaum Mwendamo Isaac
Mazaba
Juan Santambrogio
Partner
Webber Wenzel
Chief Financial Officer
Liquid Telecom
Lusaka Zambia
Restructuring Specialist
EY’s Restructuring
Practice.
Atlanta, Georgia USA
Panel
Africa Tax Conference™ 2015

3. Page 3
► In 2013 – we focused on how Boards
were responding to tax matters,
especially concerned about reputational
and brand
► In 2014 – we focused on key drivers that
support strong entrepreneurial
ecosystems. The impact of regulations,
taxes and funding sources, including the
JSE, were highlighted.
► Today we focus on why capital may not
flowing into Africa more swiftly?
► Are upside opportunities undervalued?
► Are downside risks over estimated?
Africa Tax Conference™ 2015
Asking the right questions

4. Africa Tax Conference™ 2015
Why is this
conversation
important?

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Expand funding for a strong entrepreneurial ecosystem
Sources of funding business enterprises
Revenues
Development stage
Emerging
Pre-seed Seed Start-up
Rapid-growth Expansion or market leader
Angel investors
Entrepreneur, friends of family
Incubator or accelerators
Seed or early stage VC
Government grants (e.g., R&D), SME purchasing focus
Crowd funding
Government exports schemes, grants
Formal VC and growth capital
Corporate accelerator/supplier development
Speciality bank loans and guarantees
Private equity
Public stock market
Focus in 2014 Focus in 2015
Africa Tax Conference™ 2015

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Life cycle for all enterprises
Africa Tax Conference™ 2015

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Realities of a business life cycle
Africa Tax Conference™ 2015

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The leverage pendulum and control
Africa Tax Conference™ 2015

9. Africa Tax Conference™ 2015
What exactly is a
restructuring?

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What exactly is a restructuring?
.
Africa Tax Conference™ 2015

11. Africa Tax Conference™ 2015
Are taxes
important when
everyone has lost
investment value?

12. Page 12 Africa Tax Conference™ 2015
Focus on taxes
Enterprise
► Attributes
► Debt forgiveness
► Intercompany/cross border structures
► Loss realized and recognized
► Characterization
► Impairment and partial loss versus complete
lossOwners
► Bad debts timing and characterization
► Receipt of equity in lieu of debt
► Vendor impact and indirect taxesLenders

13. Africa Tax Conference™ 2015
What does it take
to achieve real
transformation?

14. Page 14 Africa Tax Conference™ 2015
Steps to transformation and restructuring
Create clarity
around ‘why’
to restructure
Design a plan
that
accomplishes
the
restructuring
Assembling
experienced
advisors
Market the
plan to key
stakeholders
Execute

15. Page 15
Building towards a successful outcome
Africa Tax Conference™ 2015
Results
Accountability
Commitment
Conflict
Trust

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Stakeholders
Corporate
Bondholders
Credit insurers
Asset funders
Private
equity
Pension
trustees
Invoice discounter/
Asset-based lender
Clearing
bank
Mezzanine
funder
Employees
Africa Tax Conference™ 2015

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Assembling teams supporting management and legal
counsel
Africa Tax Conference™ 2015

18. Page 18 Africa Tax Conference™ 2015
Building towards a successful outcome
Results
Accountability
Commitment
Conflict
Trust

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All Rights Reserved.
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