Q.

2 Given Wellfleet’s new focus on large corporate deals and its need to
recruit relationship managers from investment banks, what are the challenges for the risk culture of the organization and its style of risk management in particular?

Challenges for the risk culture are: To educate sales people To develop risk models that enable them to make informed decision about what is the appropriate level of return they ought to get for the risk they take They are strongly focused to enlarge transformational deals with clients. It is very profitable business for the bank. Risk culture of the organization works as a circle of Credit Committee, clients and client relationship managers who directly contact each other and understand their needs to find better profitable solution for both side.

Style of risk management No surprise culture for Wellfleet in their style of risk management to board of director and top management.

Item Purpose Requested amount Credit strength Explanation To finance the proposed acquisition of Zellmont $850 million -World largest steel maker with 6% of global steel prodution -Diversified revenue based -High level of raw material integration -Good financial performance Integration risk Complex debt structure Possible failure of hostile take over Political risk high of Zellmont Credit challenge The purpose of preparing the proposal from Ashar Industries is to finance the proposed acquisition of Zellmont by $850 million. diversified revenue based. Based on first proposal from Ashar Industries through credit analysis. The credit strength of Ashar Industries are one of the world largest steel maker with 6% of global steel production. need to further streamline the complex debt structure of present company. high level of raw material integration and good financial performance with comparably high EBITDA margins and free cash flow generation in 2005. possible real break off in hostile takeover and possible political risk of Zellmonte. the challenges are integration risk with the target company. .

0 billion convertible bond due to expire on 27 February 2009. the challenges that facing by Wellfleet are need to refinance $1.1% in 2007. Taxes. -Debt protection: EBIT to interest expense was -3. And Amortization (EBITDA) was 800% in 2007 and the debt protection of Earnings Before Interest And Taxes (EBIT) to interest expense was -3.0 billion Credit strength -The world’s 3rd largest gold producer with 7% of global gold production.Need to refinance $1. Other credit strength from GGC are diversify the production base and low cost producer.375% convertible bond due February 2009 $1.0 billion convertible bond due to expire on 27 February 2009 -Total debt to EBITDA was 800% in 2007. . According credit analysis for second proposal from Gatwick Gold Corporation. GGC is the world’s 3rd largest gold producer with 7% of global gold production. total debt to Earnings Before Interest.1% in 2007 Credit challenges The purpose of Gatwick Gold Corporation is to refinance $1 billion 2. Depreciation.Item Explanation Purpose Requested amount To refinance (GGC) $1 billion 2. -Diversified production base. -Low cost producer .375% convertible bond due February 2009.