March. Bankruptcy Monitor. Highlights. Companies with high blocked amount in March 2012: Bankruptcy procedure opened against Beograf from Belgrade:

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1 Bankruptcy Monitor 2012 March Highlights Companies with high blocked amount in March 2012: Company Name City Blocked amount (EUR) Velefarm Prolek Ltd. Belgrade Sanitarija Corp. Novi Sad Beli put Ltd. Belgrade Foundation for solving the housing problems of young scientists Belgrade Habit pharmacies Ivanjica Konekt Group Ltd. Novi Sad Monterra Ltd. Belgrade A branch of the Slovenian construction company Corp. Belgrade Hospital Ostrog Belgrade Sarulja Ltd. Belgrade Bankruptcy procedure opened against Beograf from Belgrade: The Company was registered in 1995 in the form of a public company with core business activities in the field of flexible packaging materials production mostly for food industry. The product range consists of coffee, frozen products, soups, ice cream packaging materials and special materials for PET packaging labels.

2 Dear Sirs, In front of you is the twelfth WM Equity Partners Bankruptcy Monitor report which completes the first year of its publication. Twelve month of pre-bankruptcy and bankruptcy proceedings follow up in Serbia can be described as a highly dynamic process, primarily due to the number of companies that have entered the troubled area of operations and the fact that many of these companies are extremely large and important business systems whose bankruptcies are certainly a major impact on the overall economy of Serbia. Infamous list of companies is long, many would say too long, and the Bankruptcy trustee agency statistics says that in early April of 2012 in the territory of Serbia bankruptcy proceedings were active; and were closed by the same date currently dominates by the total number of opened insolvency proceedings with a total of which is a 25% increase over the previous year. Looking at the same statistics from the perspective of commercial courts the Commercial Court in Belgrade took almost 30% of all newly opened bankruptcy proceedings. BM report discussed the significant number of companies in bankruptcy and for the purpose of this short overview we mention the following: Valjevo brewery, Habit Farm, Srbolek, Avala film, Agricultural cooperative Gucevo, Kolbis, Zlatibor construction, Luxol, Zastava promet, Alpos, Universal Holding etc. Most of these bankruptcy proceedings are still in their official procedures from the sale of assets or the company as a whole to the process of adopting the plan of reorganization. Given the size of these companies as well as the complexity of each procedure this is certainly to be expected, especially when taking into account the statistics of Bankruptcy trustee agency at which the average length of bankruptcy proceedings in Serbia is almost two years. The company property selling segment recorded several large transactions in the past. However, the sale offer is still filed with a considerable amount of assets largely made up of production buildings and land. I believe that over the past twelve months BM provided a sufficient level of information s regarding current events in the area of problematic operating companies in Serbia and that with certain improvements in content and form will continue to do so in the future. Sincerely, Milos Savic WM Equity Partners

3 WMEP Bankruptcy Monitor Most interesting bankruptcy proceedings opened in March 2012 FPM Beograf Corp. Belgrade (business sector: plastic processing industry; national ID number: ) The Company was registered in 1995 in the form of a public company with core business activities in the field of flexible packaging materials production mostly for food industry. The product range consists of coffee, frozen products, soups, ice cream packaging materials and special materials for PET packaging labels. The Company currently employs about 140 workers and has a production capacity of about tons of products per year. According to the latest available consolidated financial statements for 2010, the Company realized a loss of EUR 9.5 million and owned a total asset of approximated book value EUR 36 million. The Companies consolidation includes a smaller company "PSM GROUP" Ltd. from Belgrade, whose negligible activity is in the field of foreign and domestic trade. After a period of large operating losses the Commercial Court in Belgrade judge made the decision to initiate bankruptcy procedure against the Company on March 11 th Year Operating revenue (EUR) Ratko Mitrovic Ltd. Kragujevac (business sector: construction industry; national ID number: ) The Company operates within the construction industry; primarily in the field of residential and nonresidential constructions. The Company was founded in 1998 in the form of a limited liability company and a bankruptcy procedure was initiated on March 18 th 2012 by the Commercial Court in Kragujevac decision. The Company employs about 150 workers and in 2010 realized a net loss of about one million EUR. The book value of the Companies asset at the end of 2010 is estimated at EUR 3.8 million while the losses over capital totaled at about one million EUR. Previously, the Company had several major construction projects; however the effect of economic crisis and a general slowdown in economic activity had a particularly negative effect on the construction industry and thus the actual operations of the Company. Year Operating revenue (EUR) Panvita Corp. Djurdjin (business sector: agricultural production; national ID number ) This company operates in the form of a public company established in Today it operates in the field of agricultural production primarily in the area of wheat, legumes and oilseeds production. The privatization of the Company was completed in late 2004 while bankruptcy proceedings were opened in March 14 th 2012 by the decision of the Commercial Court in Subotica. According to the latest available financial statements for 2010 the Company employed 87 workers and during the same period achieved a net loss of EUR 1.3 million. WM Equity Partners, April 2012 WMEP Bankruptcy Monitor 3 P a g e

4 Others ASCO Vidak Ltd. Futog (business sector: metal processing industry; national ID number: ) The Company operates in the field of metal processing industry and its operations were part of a greater Greek business group called ASCO GROUP. The Company was founded in 2005 and it operates in the field of production and distribution of industrially produced gratings, wires and fences necessary for the construction industry production. Due to the reduced volume of business caused by poor operation of the construction industry, the Company entered into a series of problems related to its liquidity which ultimately leaded to the bankruptcy proceedings initiation. The bankruptcy proceedings were opened on March 6 th 2012 by the decision of the Commercial Court in Novi Sad. According to the latest available financial statements for 2010 the Company employed 176 workers and made a net loss of EUR 3.6 million. The book value of all the Companies assets at the end of the period was 32.8 million EUR. Team Oil Corp. Belgrade (business sector: oil trading; national ID number: ) The Company was founded in 2005 and it operates in the field of oil and oil derivatives trading in Serbia. The last registered business results were in 2009 when the Company achieved total revenue of about 60 million EUR and a net loss of one million EUR. In 2009 the Company employed eight workers and it was classified as a large business entity. The bankruptcy procedure was initiated on March 8 th 2012 by the decision of the Commercial Court in Belgrade. Caricin Grad Visokogradnja Ltd. Belgrade (business sector: construction industry; national ID number: ) The Company was founded in 1995 and it operated in the sector of construction industry. In 2010 the Company employed 46 workers and generated a net loss of approximately EUR 633k. The bankruptcy proceedings were opened on March 28 th 2012 by the decision of the Commercial Court in Belgrade. We remind you that Caricin Grad Niskogradnja Ltd. from Belgrade also entered the bankruptcy procedure by the end of Metro na vodi Ltd. Belgrade (business sector: transport and other services; national ID number: ) Metro na vodi (Water metro) is a company that operated in the field of Belgrade river tourism and catering activities. The Company was established in 2003 while the bankruptcy proceeding was initiated on February 29 th 2012 by the decision of the Commercial Court in Belgrade. The Company had several tourist boats used in performing its primary business activity of transport and sightseeing. According to the financial statements for 2010 the Company had one employee and during the same period made a net loss of about EUR 50k. WM Equity Partners, April 2012 WMEP Bankruptcy Monitor 4 P a g e

5 Property sale in March 2012 Industrija kotrljajucih lezajeva Corp. Belgrade From its incorporation date the Company operated in the field of industrial production of bearings, gears and gear drive components. After a period of troubled business the bankruptcy procedure was initiated on November 22 nd 2010 by the Commercial Court in Belgrade decision. Since the bankruptcy proceedings initiation there has been five attempts to sell the assets of the Company. The last one was held on March 6 th 2012 when assets offered for sale totaled at about 10 million EUR. The property offered for sale was mostly made up of the production halls as well as all the equipment used in the process of performing its primary business activity. The offer was not successful. Metalex Ltd. Belgrade Metalex is a company operating in the area of trade and distribution of metals including the installation materials and equipment and accessories for heating. The Company is in bankruptcy procedure since March 10 th Since the bankruptcy proceedings initiation there were several organized attempts to sell the property. The last attempt was held on March 7 th 2012 when the Companies assets with approximated value of EUR 3 million was offered for sale through the public tender procedure. The offer was grouped into two segments mostly made up of industrial land in Lestane (total area around 182 ar) with the construction in progress building area of about m 2. The offer was not successful. Chicken farm Ltd. Zitiste This agricultural enterprise operated in the field of poultry. The bankruptcy proceedings were opened on July 23 rd 2010 by the Commercial Court in Zrenjanin decision. Second sale procedure of property was organized on March 14 th The most important elements of the Company's assets that were on sale include: commercial buildings and manufacturing facility that were used in performing the primary business activity. The offer was not successful. Cheese factory Dzersi Ltd. Knjazevac This company is in bankruptcy since February 21 st Since the bankruptcy initiation a number of property selling attempts were organized. On March 28 th 2012 the eleventh selling procedure took place. The entire business model of cheese factory was offered for sale at a cost of around one million EUR. These previous selling procedures were mentioned several times in the previous reports. The last offer was also not successful. Preliminary bankruptcy procedures Plima Holding Ltd. Krusevac This Company was mentioned in the previous Bankruptcy Monitor as one of ten companies with the greatest blocked amount in February On March 23 rd 2012 the judge of the Commercial Court in Kraljevo made the decision to launch the preliminary bankruptcy procedure which will further establish the facts relevant to the insolvency proceedings. WM Equity Partners, April 2012 WMEP Bankruptcy Monitor 5 P a g e

6 Ten companies with high blocked amount in March 2012 # Company City National ID number Blocked amount (EUR) 1 Velefarm Prolek Ltd. Belgrade Sanitarija Corp. Novi Sad Beli put Ltd. Belgrade Foundation for solving the housing problems of young Belgrade scientists 5 Habit pharmacies Ivanjica Konekt Group Ltd. Novi Sad Monterra Ltd. Belgrade A branch of the Slovenian construction company Corp. Belgrade Hospital Ostrog Belgrade Sarulja Ltd. Belgrade Source: WM Equity Partners, April 2012 WMEP Bankruptcy Monitor 6 P a g e

7 Contact: WM Equity Partners Ltd, Belgrade Mihajlo Pupin Boulevard 10a, Belgrade, SERBIA Vladimir Pavlović, CFA Director Tel: Web site: Disclaimer This report was prepared, presented and authorized by WM Equity Partners Ltd. Belgrade, based on data provided by the Client and publicly available data, own data, independent analysis and other data considered to be reliable, but which accuracy is not guaranteed. All data included in this report represent our analysis on date marked in report and are subject to changes. WM Equity Partners, its management and employees cannot be responsible for any damage that was caused by this report. Information presented cannot be regarded as recommendations for buying or selling of the securities, properties and/or assets.