Determinants of Claim Recoveries. Area EPM assumptions Allocated EPM Value The Allocated EPM Value attributable to each Group DOCA Company is determined on the basis of the following primary components, in aggregate: Enterprise value of the Group – The enterprise value of the Group has been estimated based on business plan projections and the public market valuation of comparable healthcare businesses. Enterprise value for individual entities – The value of the Group is split by operating cluster based on business plan projected EBITDA. Within operating clusters, entity-by-entity enterprise value is based on the most detailed historical financial statement information available, including intercompany receivables. Subsidiary undertakings - where relevant,2 the equity value of a Group DOCA Company’s subsidiaries (both within and outside administration) contributes to its Allocated EPM Value. If there is Allocated EPM Value available after all a subsidiary entity’s liabilities are satisfied, the 1 The Administrators will use their discretion to attribute the value they consider reasonable to a Holdback Claim for the purposes of determining claim recoveries, without prejudice to alter such assessment in connection with the Claims Determination Process. 2 For example, if the subsidiary undertaking is not in administration. Area EPM assumptions residual value flows proportionally to its equity holders (including minority shareholders). If an equity holder is another Group entity, the value of its equity holdings are an asset which will add to that other Group entity’s Allocated EPM Value. The equity value of subsidiaries not in administration is calculated on the basis of their enterprise value, plus non-core assets and intercompany receivables (that could represent additional value) and less third-party debt, intercompany payables and guarantees of impaired guarantee claims debtors within administration (that could represent additional liabilities). No litigation proceeds that could be derived by any Group entity following the Restructuring Effective Date are included in the EPM. Recoveries from such proceedings will be paid to creditors of the relevant Group DOCA companies separately. Claim Recoveries A Group DOCA Company’s Allocated EPM Value is then applied by the EPM in accordance with the ADGM insolvency waterfall. A summary of that waterfall is as follows (in order of priority): Fixed Charge claims – Estimated proceeds (if any) that would be distributable to creditors who have fixed char...
