Renesas Electronics Corporation

Event Publicly Available Information:

Question: Has a Restructuring Credit Event occurred with respect to Renesas Electronics Corporation? On September 30, 2013, Renesas Electronics Corporation (“Renesas”) announced that it has received financial assistances in the form of debt waivers agreed to by its creditors on September 30, 2013 (see “attachment 1” (Japanese) and “attachment 2” (English) below). As reported by Renesas on September 28, 2012, a total of JPY49.5 billion in new financing was procured from its major shareholders (see “attachment 3” below). The financing includes a loan of JPY17.5 billion from Hitachi, Ltd., a loan of JPY14.5 billion from Mitsubishi Electric Corporation and a security deposit of JPY17.5 billion from NEC Corporation (together with the 2 loans, the “Obligations”). To implement further restructuring measures, Renesas subsequently entered into negotiations with its major shareholders with a view to changing the loan conditions, resulting in the receipt of planned financial assistance in the form of a partial debt waiver from some of its major shareholders who are also creditors. According to the press release of Renesas dated September 30, 2013, the amount of the debt waivers is JPY7.636 billion, which amounts to 1.46% of Renesas’s total liabilities. The debt waivers relate to part of the Obligations. These financial assistances will result in the occurrence of extraordinary profit in the second quarter of the fiscal year ending March 31, 2014. Renesas plans to record gains of JPY7.636 billion arising from the debt waiver to be recorded in the financial results for the second quarter of the fiscal year ending March 31, 2014, as special income. Accordingly, Renesas has agreed certain amendments in respect of the financing it procured from its major shareholders as reported in September 2012. The amendments to the loan conditions referred to in the press release of Renesas dated September 30, 2013 amount to a reduction in its obligation to repay amounts in respect of its Obligations in excess of the Default Requirement of JPY 1,000,000,000, leading to the occurrence of a potential Restructuring Credit Event.

Publicly Available Information:

(attachment 1) http://japan.renesas.com/press/news/2013/news20130930d.jsp

(attachment 2) http://www.renesas.com/press/news/2013a/news20130930d.jsp

(attachment 3) http://www.renesas.com/press/news/2000/news20120928a.jsp

Press release
Press release
Press release

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Additional Information

Issue Number:

2013101601

Submitted by:

General Interest Question

Category:

Credit Event

Coverage Election:

Not Applicable

Status:

Closed

Outcome:

Question Dismissed
Procedural History
- Closed
  
  Japan Determinations Committee Decision (14 January 2014)
  January 14, 2014: The DC agreed that there was still not sufficient information to determine the DC Question and DC members voted to dismiss the DC Question.
  1/14/2014 05:50am EST
- Ongoing
  
  Japan Determinations Committee Decision (9 January 2014)
  January 9, 2014: The DC voted to extend the deadline for holding a binding vote on the DC Question, pending receipt of further information by the DC. At the meeting on January 14, 2014 consideration will be given to determination of the DC Question.
  
  1/09/2014 10:55am EST
- Ongoing
  
  Japan Determinations Committee Decision (12 December 2013)
  
  December 12, 2013: The DC agreed that there was still not sufficient information to determine the DC Question. DC members voted to extend the deadline for holding a binding vote on the DC Question, pending further information, including in particular information relating to the legal nature of the guarantee deposits and the causation of the amendment of the debt. At the meeting on January 9, 2014 consideration will be given to dismissal of the DC Question.
  12/12/2013 03:25pm EST
- Ongoing
  
  Japan Determinations Committee Decision - 31 October 2013
  October 31, 2013: The DC agreed that there was still not sufficient information to determine the DC Question. DC members voted to extend the deadline for holding a binding vote on the DC Question, pending further information.
  10/31/2013 06:40am EDT
- Ongoing
  
  Japan Determinations Committee Decision (18 October 2013)
  October 18, 2013: The DC agreed that there was sufficient Publically Available Information to satisfy the requirements of Section 2.1(b) of the DC Rules but that there was not sufficient information to determine the DC Question. DC members voted to extend the deadline for holding a binding vote on the DC Question.
  10/18/2013 05:15am EDT
- Request Accepted by DC
  
  10/16/2013 09:05am EDT
- Pending DC Consent
  
  10/16/2013 05:15am EDT