DARP Clearwater

completed

The global economic contraction, turmoil in the global financial markets and withdrawal of banks and other financial institutions from the Asia region have all contributed to significant price declines of financial assets in Asia. In this market environment, it is anticipated that over the next few years a number of viable companies that are now in financial stress become distressed as they exhaust their refinancing options, and/or violate covenants associated with their debt structure/obligations. These companies, many viable and typically mid-sized, face tremendous difficulties in the previously described scenario, as traditional banks stop lending to them while at the same time find it very difficult to reach adequate restructuring solutions. Clearwater Capital Partners, LLC (“CW” and Sponsor) a large and experienced Distressed Asset (“DA”) investors in Asia, is currently closing an investment fund (Fund IV, the “Fund”) which will be dedicated to pursue DA opportunities in the Asia region. The Fund primarily aims to: i) support the funding needs of mid-sized companies in the Asia region which are either too small for major banks or do not meet the risk profiles sought by such banks; and ii) purchase assets from financial institutions to help address asset quality and free up capital for new lending. In that context, CW and IFC plan to structure a debt facility for certain Fund investments where leveraging would be appropriate.