On December 30, 2009 the Credit Derivatives Determinations Committee for Japan resolved that a Restructuring Credit Event occurred in respect of AIFUL Corporation and that an auction would be held. This page contains details of the DC Resolutions, auction documentation and other items relating to the auction for AIFUL Corporation.
Further documentation relating to the auction will be added as it becomes available.
Please note that ISDA has published a Uniform Settlement Agreement to facilitate the orderly settlement of transactions that are subject to the above Credit Event announcement, this is below, together with a Frequently Asked Questions document for reference.
Please note that the fact that an Auction Covered Transaction referencing Aiful Corporation was entered into more than sixty days after the date of the Restructuring Credit Event referred to here does not prevent the Buyer under that transaction from being entitled to serve a Credit Event Notice.
By contrast, the DC Credit Event Announcement would be deemed not to have occurred with respect to a transaction with a Trade Date after the Auction Final Price is determined. A Credit Event Notice could therefore not be served under such a transaction in respect of the Restructuring Credit Event referred to here. As a Credit Event Notice must be served by the Tokyo business day before the date on which the Auction Final Price is determined, in practice this would mean the Trade Date of a transaction, in respect of which the DC Credit Event Announcement would be deemed to have occurred, would have to be on or prior to such deadline in order for this to be possible.
Event Publicly Available Information:
Due to its financial difficulties, AIFUL Corporation ("Aiful") filed for the Business Revitalisation ADR process on 24 September 2009 with a view to revitalising their business with financial support and co-operation from the creditors participating in the Business Revitalisation ADR through modification to repayment schedules for loan obligations held by such creditors and other measures. At the final meeting on 24 December 2009, Aiful, upon receiving the unanimous consent of the participating creditors, agreed that the maturity dates for the principal of the loan obligations held by such participating creditors have been deferred, and the repayment schedules have been changed, the main content of which will be to maintain the balance until September 29, 2010 and make payments on September 30, 2010, June 10, 2011, June 10, 2012, June 10, 2013 and June 10, 2014 with Yen 10,000 million being the aggregate repayment amount for the payment on September 30, 2010 and Yen 16,500 million being the aggregate repayment amount on each of the other payment dates. This restructuring of the loans shall bind all creditors participating in the Business Revitalisation ADR and the aggregate principal amount of the restructured loans is JPY195,200 million as of 24 December. Publicly Available Information: press release: http://www.ir-aiful.com/english/index.cfm