Walkers Sees Significant Opportunity for Offshore Services in Asia

Offshore Structures Offer Opportunities for Restructuring as well as Investment

HONG KONG, December 10 - The worldwide financial market's performance over the last twelve months
has made some financial institutions and investors wary. However, leading
global offshore law firm Walkers sees opportunities for offshore finance and
private equity structures in Asia. While there have certainly been shifts in
focus by the market, the right offshore strategies can help achieve onshore
solutions for investors and institutions, says Walkers.

Over the past five years, there has been significant growth in foreign
direct investment in Asia, and particularly in the Peoples' Republic of
China. In that time, thousands of companies have been incorporated in the
British Virgin Islands (BVI) and the Cayman Islands to facilitate such
investments. However, due to differences in legal frameworks and financial
markets around the world, achieving success for shareholders, investors and
creditors can sometimes prove challenging. The dependability of the legal
systems in the BVI and the Cayman Islands is often a key factor in the
decision to use incorporated companies in one or both of those jurisdictions
in Asian corporate structures.

"Arguably, the enforcement of domestic security in Europe and North
America is more dependable than domestic security in developing markets,"
said John Rogers, head of the Finance and Corporate team for Walkers'
Singapore office. "However, where there is some uncertainty about the
enforceability of domestic security, which is sometimes the case in
developing Asian markets, offshore security and structuring are integral."

The recent economic downturn has systemically changed financial centres
around the world and materially impacted Asian finance. These changes will
likely result in changes to financial agreements moving forward.

"Only a few years ago, borrowers had enormous power. Wielding this power
to hamstring banks, borrowers were left to essentially structure deals by
their own terms. We now have a Brave New World, where power is back in the
hands of the lenders who have renewed leverage to increase their collateral
and security positions," said Andy Randall, head of the Finance and Corporate
team for Walkers' Hong Kong office. "As creditors and shareholders continue
to fight for their rights in financial agreements, this trend could be a
game-changer in Asia and around the world."

In the developing Asian markets, Walkers has seen increased utilization
of offshore security packaging, restructuring and the use of offshore
insolvency-related remedies as a means to achieving onshore solutions.

"The financial crisis has forced a shift in the offshore markets to focus
on rights, remedies and enforcement options for creditors and shareholders,
financial and corporate restructuring, and the resolution of shareholder and
investor disputes," said Randall. "In addition, many hedge funds have been
looking at restructuring to survive lower returns, liquidity concerns and
other market challenges. This shift has created opportunities for
implementing solutions that combine onshore and offshore elements."

Achieving the right outcome involves working together with the onshore
lawyers in the relevant market from the outset. The offshore enforcement
strategy for an Indonesian asset, for example, may be different than the
strategy for a Chinese asset or an Indian asset.

"Offshore-onshore interaction has become a necessity to favorably resolve
restructuring and insolvency issues, particularly in the Asian markets. When
it comes to pre-emptive enforcement of offshore security, the Cayman Islands
and the British Virgin Islands are seen as creditor friendly jurisdictions,"
said Antonia Hardy, head of Walkers' Global Finance & Corporate Group.
"Offshore services often provide part of the solution. However, the strategic
analysis prior to the enforcement is absolutely crucial."

This is a view shared by Fraser Hern, the head of the Walkers' Hong Kong
Restructuring and Insolvency team. "Strategic analysis prior to an
enforcement or restructuring is critical, and should involve both onshore and
offshore counsel. There is a wide range of differing options available as a
matter of BVI or Cayman Islands law which can assist stakeholders involved in
distressed scenarios onshore. Determining which is appropriate in any given
scenario requires a thorough analysis of key issues at an early stage,
including the location of the underlying assets, identity of key creditors,
attitudes of local courts, future liquidity issues, and identifying the
client's ultimate objectives. Strategies differ widely depending on the
specific details of the matter in hand."

About The Walkers Group

From offices in the British Virgin Islands, Cayman Islands, Dubai, Hong
Kong, Jersey, London, and Singapore, the Walkers group provides legal and
management services to leading FORTUNE 100 and FTSE 100 global corporations
and financial institutions, capital markets participants, investment fund
managers, and growth-and middle-market companies.

The Walkers group is comprised of leading offshore law firm, Walkers;
fund services provider, Walkers Fund Services Limited; and SPV and corporate
services providers, Walkers SPV Limited, Walkers Corporate Services Limited
and Walkers (BVI) Limited.

Walkers was recently named "Offshore Law Firm of the Year 2009" by PLC
Which Lawyer? and "Top Offshore Law Firm 2008" by Alpha Magazine. Walkers was
also named "Offshore Law Firm of the Year" at the Asian Legal Business Hong
Kong Law Awards in 2007 and 2008. In 2006, Walkers was named as The Lawyer's
Offshore Law Firm of the Year, the PLC Which Lawyer? Yearbook Leading Cayman
Islands Law Firm and was one of two firms honoured as "Offshore Legal Team of
the Year" by the Society of Trust and Estate Practitioners (STEP). Walkers
was named the Who's Who Legal Law Firm of the Year: Cayman Islands for 2006
and 2007.

For more information on the Walkers group, visit us on the web at
www.walkersglobal.com or contact us by e-mail at info@walkersglobal.com. To
contact Walkers' Hong Kong office by phone, call +852 2284 4566. To contact
Walkers' Singapore office by phone, call +65 6622 5928.

Bruce Fryer of Levick Strategic Communications for Walkers, +1-202-973-5316, bfryer at levick.com