Page 45 - BAM ONE REPORT 2565 (ENGLISH VERSION)

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Form 56-1 One Report 2022

(3) Debt restructuring

The following flow chart depicts the Company’s process for NPLs management and debt restructuring

Issue invitation to debtors/
guarantors/ mortgagors/
pledgors

Debtors contact the Company within the specified period Debtors don’t contact the Company within the specified period

Negotiate the debt
restructuring
A conclusion
is not reached
Judicial Process

The dispute is settled The dispute is not settled

A conclusion is reached Initiate a compulsory
Restructuring the debt performance and put
Prepare the debt compromise the collateral out for auction
document, debt restructuring
agreement, and related documents
The company wins the bid Third parties win the bid

Payment made by Payment made by NPAs Cash
Payment made transferring of the the conversion of
in cash collateral/ assets debts into equity

When the Company purchases the NPLs from the financial institutions, the Company will contact the debtors,
guarantors, pledgers and mortgagers of the Company’s ownership of the debts.

When the Company contacts the debtors, it will invite the debtors into negotiation with the Company to enter
the debt restructuring process. In case of not being able to reach the debtors, the guarantors, mortgagors, and pledgors,
the Company will enter the court proceedings with such debtors. For debtors with incomplete debt restructuring, the
debt restructuring process will be carried out together with the court proceedings to create the condition of collateral
foreclosure with objectives to reduce the operating time for debt settlement.

For debt restructuring, the Company will evaluate the collaterals and repayment ability of the debtors. The Company
considers various factors such as salary, occupation, business type and existence of the such debt guarantee. Furthermore,
the Company will consider options in the debt restructuring process which includes A) agreement on debt settlement by
adjusting conditions of repayment such as extending term of debt settlement, reducing interest rate and/or principal
amount, (B) transferring collateral/ repayment property and (C) the conversion of debts into equity. These are the methods
the Company uses in the debt restructuring process depending on repayment ability of each debtor.