Titan Europe 2007-1 (NHP) Limited - Irish Stock Exchange

until the premises are again rendered fit for use and occupation or (if earlier) the expiration of the period for
which loss of rent has been insured.
The insurance against loss of rental value will cover the loss of rent during the period of rent cessation up to
a maximum of 36 months, although there could be administrative delay in obtaining payment by the insurers
which could affect the ability of the Borrower, and accordingly also the Issuer, to meet its payment obligations
during that period of delay.
Certain types of risks and losses (such as losses resulting from war, terrorism, nuclear radiation, radioactive
contamination and heaving or settling of structures) may be or become either uninsurable or not economically
insurable or are not covered by the required insurance policies. Other risks might become uninsurable (or not
economically insurable) in the future. If an uninsured or uninsurable loss were to occur, the Borrower might not
have sufficient funds to repay in full all amounts owing under or in respect of the Credit Agreement.
The Issuer’s beneficial interest in the Related Security (which includes the benefit of the buildings
insurance policies) will form part of the Issuer Security charged to the Note Trustee for the benefit of, among
others, the Noteholders under the Deed of Charge and Assignment. However, for the reasons described above
(uninsurability), the ability of the Security Agent and/or the Note Trustee to make a claim under the insurance
policies is not certain.
The period of recovery in respect of loss of rental value under the insurance policy generally will be limited
to a period comprising both (i) the period during which the damaged property could, with due diligence, have
been rebuilt, repaired or replaced, and (ii) an additional period, being that required to restore the relevant
Property Owner’s business to the condition that would otherwise have existed, such period commencing from
the later of (a) the date on which the insurers’ liability would otherwise terminate and (b) the date on which the
damaged property is actually rebuilt, repaired or replaced, such additional period being, in any event limited to
one year from the later of (a) and (b). Although each relevant tenant will, again, be liable for the rent if the
relevant lease subsists after that period, it is likely that a tenant so affected would exercise any rights it may have
to terminate its lease (where such right is granted) if the premises are not reinstated in time. Thus, after the
expiry of the period of coverage for loss of rent, the relevant Property Owner could cease to be entitled to both
the rental income from the Property and further loss of rent insurance. In addition, if those circumstances
applied, the proceeds of the insurance taken out by the relevant Property Owner (which will cover the costs of
reinstatement) may not be sufficient to pay, in full, all the amounts due from the Borrower under the Credit
Agreement and, hence, the Notes.
The terms of some of the tenancies require the landlord to carry out the reinstatement of damaged premises
following damage or destruction by an insured risk subject to any necessary planning permission or other
consents being obtained, and to apply the proceeds of the buildings insurance (other than loss of rent insurance
monies) for this purpose.
There is no assurance that each Property Owner will maintain the insurance required under the Credit
Agreement or that such insurance will be adequate. Moreover, if reconstruction or any major repairs are
required, changes in laws or planning requirements may materially affect the Borrower’s or Property Owners’
ability to effect any reconstruction or major repairs or may materially increase the costs of the reconstruction or
repairs.
As a result of any of these factors, the amount available to make payments on the Notes could be reduced.
Litigation: There may be pending or threatened legal proceedings against the Borrower and/or its
respective affiliates arising out of the ordinary business of the Borrower and/or its respective affiliates. To the
knowledge of the Loan Arranger, as at the Closing Date, there is no material litigation pending or threatened
against any Property Owner in respect of the Properties.
Other Indebtedness, Liabilities and Financing: The existence of indebtedness incurred by the Borrower
other than the Libra Whole Loan could adversely affect the financial viability of the Borrower. Additional debt
increases the likelihood that the Borrower would lack the resources to perform on both the Libra Whole Loan
and such additional debt. In addition, the existence of any actual or contingent liabilities of the Borrower may
result in the insolvency or (if applicable) administration of a Borrower which may lead to an unanticipated
default under the Libra Whole Loan.
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