Event Publicly Available Information:
Category:Credit Event Factual Background: On August 25, 2009, AIFUL Corporation (“Aiful”), the Reference Entity, filed application for the business revitalization proceeding (the “Business Revitalization ADR”) in accordance with Act on Promotion of Use of Alternative Dispute Resolution (Act No. 151 of 2004; the “ADR Act”) and Act on Special Measures concerning Industrial Revitalization (Act No. 131 of 1999) with the Japanese Association of Turnaround Professionals (“JATP”), a private institution licensed by the Ministry of Justice (the “MOJ”) of Japan as dispute resolution business operator. Following Aiful’s filing for the Business Revitalization ADR, the examiners were appointed by JATP for examining the application and then they reviewed it from the perspective of whether the Business Revitalization ADR suited the restructuring of Aiful. In general, if the examiners confirm that the Business Revitalization ADR suits the restructuring of the filing company after conducting hearings and other types of review on the case, they will provisionally accept the application on the condition of payment by the applicant of service fees and thereafter appoint an Executor candidate out of registered attorneys having expertise in turnaround business, who is to supervise the proceeding when it formally commences. On September 18, 2009, Aiful published that the application for the Business Revitalization ADR had been provisionally accepted by JATP (see href="http://www.ir-aiful.com/data/current/newsobj-1618-datafile.pdf), meaning that the examiners had confirmed that the Business Revitalization ADR would be suitable for Aiful’s efforts to turn around its business in consideration of the outcome of the review. On the same day The Sumitomo Trust and Banking Corporation, Ltd. (“STB”), one of the main financing banks of Aiful, also published its comment that the bank was in a position to “consider necessary cooperation constructively after examining Aiful’s business turnaround plan,” provided that the application for the proceeding was formally accepted (see http://www.sumitomotrust.co.jp/IR/company/en/pdf/nr2009/E090918.pdf). Considering, in addition to the foregoing announcements published by Aiful and STB respectively, the fact that (i) JATP’s formal acceptance of the debtor’s application for the Business Revitalization ADR depends heavily on whether the debtor’s main financing banks are supporting the restructuring plan (as the regular practice by JATP of the proceeding, if any of main financing banks of the debtor is unwilling to support the debtor’s efforts to turn around, JATP has made it a rule not to accept the debtor’s application), (ii) JATP did accept Aiful’s application on the next business day to the day on which Aiful and STB respectively made the aforementioned announcements, (iii) Aiful had sought consent to the filing from us, the company’s 2nd main bank, and (iv) Aiful did suspend the payment of loan principal to STB in an amount not less than 1.0 billion yen, scheduled on September 30, 2009, without receiving any objection from STB, it is safely assured that on or before September 18, 2009 Aiful and STB had reached an agreement on the postponement of the payment by Aiful to STB, scheduled on September 30, 2009, in an amount not less than 1.0 billion yen. On September 24, 2009, Aiful’s application for the Business Revitalization ADR was formally accepted and the proceeding commenced, followed by the appointment of the Executor. Following the formal acceptance by JATP of Aiful’s application for the Business Revitalization ADR, Aiful published the summary of proposed business revitalization plan (see http://www.ir-aiful.com/data/current/newsobj-1625-datafile.pdf) and Aiful and JATP, in their joint name, sent to all creditors who are to be subjected to the proceeding a written request for their consent to suspension of payment and forbearance from enforcing security interests. On September 30, 2009, Aiful in fact suspended payments of loan principal to all of its lenders, including the payment to STB in an amount not less than 1.0 billion yen, in accordance with the written request dated as of September 24, 2009. Question: Has a Restructuring Credit Event occurred with respect to Aiful on or around September 18, 2009 Tokyo time because STB and Aiful had reached an agreement on the postponement of the payment in an amount not less than 1.0 billion yen scheduled on September 30?