Vauld Track election and one-time conversion FAQs as of 19 Jul 2023

How Variable Recoveries Track and Pro-Rated Track differ

Variable Recoveries Track (VRT) creditors can participate in RDAs and may gain upside from extinguished claims of exiting creditors, while also taking additional illiquid asset realization risk.

Pro-Rated Track (PRT) creditors do not participate in RDAs and receive distributions pro-rata based on approved claims within the PRT pool.

Which track is better and can claims be split?

The best track depends on creditor objectives and risk tolerance: PRT is generally suited for creditors who want to avoid RDA exposure, while VRT suits creditors who want RDA participation and broader upside/downside exposure.

Track election applies to the full approved claim; splitting one claim across VRT and PRT is not permitted.

Expected recovery ranges mentioned in the scheme materials

Forecast ranges referenced in the explanatory materials indicated about 36% to 93% for PRT, depending on illiquid asset realization outcomes.

For VRT, expected outcomes were presented as wider, around 28% to 217%, due to bid discount dynamics and RDA exit timing.

Illustrative payout timing referenced at that stage

Based on the timeline assumptions used in the communication, successful Initial RDA VRT bids were expected around 31 August 2023, while unsuccessful/non-bidding VRT cases and PRT net liquid distributions were indicated around 30 September 2023.

These dates were projection-based and tied to court-sanction assumptions in the update.

• VRT with successful Initial RDA bid: projected by 31 Aug 2023
• VRT without successful bid: projected by 30 Sep 2023
• PRT distribution of net liquid assets: projected by 30 Sep 2023