Ardagh Glass Finance plc - Irish Stock Exchange

court). As a general rule, such legal proceedings must be initiated within 12 months after the
declaration of the bankruptcy adjudication. In the event of bankruptcy, claims in foreign currencies will
be converted into Danish kroner using the Danish National Bank’s (Nationalbanken) official exchange
rate for the relevant currency against Danish kroner as of the date of declaration of bankruptcy by the
Danish Insolvency Court.
Sweden
Difference in Insolvency Law
Certain Subsidiary Guarantors are incorporated under the laws of Sweden and as such any
insolvency proceedings applicable to such Subsidiary Guarantors may be governed by Swedish
insolvency law.
Priority of Certain Creditors
As a general principle, under Swedish insolvency law competing claims have equal right to
payment in relation to the size of the amount claimed from the debtor’s assets. However, some
preferential and secured creditors, where such preference or security may arise as a consequence of
law, have the benefit of payment before other creditors. There are two types of preferential rights:
specific and general preferential rights. Specific preferential rights apply to certain specific property and
give the creditor a right to payment from such property. General preferential rights cover all property
belonging to the insolvent company’s estate in bankruptcy, which is not covered by specific preferential
rights, and give the creditor a right to payment from such property. Claims that do not carry any of the
above mentioned preferential rights or exceed the value of the security provided for such claim (to the
extent of such excess), are non-preferential and are of equal standing as against each other.
Limitations on the Value of a Guarantee
To the extent that a guarantee by a Swedish limited liability company for the obligations of a
parent or sister company exceeds the distributable reserves of the relevant guarantor at the time when
the guarantee is given, the validity of such guarantee is subject to the condition that the guarantor
receives consideration on market terms for its undertakings or that otherwise sufficient corporate
benefit accrues. It should also be noted that laws relating to financial assistance in Sweden prohibit
limited liability companies incorporated in Sweden from providing guarantees or granting security or
other credit support for debt financing relating to the direct or indirect acquisition of shares in these
companies, or limit the enforceability of such guarantees and securities, and the Guarantees provided
by Swedish Subsidiary Guarantors will be limited accordingly to ensure compliance with applicable law.
Limitations on the Validity of Certain Transactions
In bankruptcy and company reorganization proceedings, transactions can (in certain circumstances
and subject to a time limit) be reversed and the goods or monies can then be returned to the
bankruptcy estate or the company subject to company reorganization. Broadly, these transactions
include, amongst others, situations where the debtor has conveyed property fraudulently or
preferentially to one creditor to the detriment of its other creditors before the initiation of the relevant
insolvency proceedings, created a new security interest, granting a guarantee or security that was either
not stipulated at the time when the secured obligation arose or not perfected without delay after such
time and the delay is not considered to be ordinary, or paid a debt that is not due or that is
considerable compared to the value of the debtor’s assets or if the payment is made by using unusual
means of payment. In the majority of situations, a claim for recovery can be made concerning actions
that were made during the three months preceding the commencement of the relevant insolvency
proceedings. In certain situations, longer time limits apply and in others there are no time limits. These
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