Asia

Aiful Corp.'s debt restructuring is a credit event and has triggered an auction of the credit default swaps written on the Japanese consumer credit firm's debt, a committee of dealers and investors ruled Wednesday, The Wall Street Journal reported. The Japan Determination Committee of the International Swaps and Derivatives Association, or ISDA, determined that a "restructuring credit event" had occurred, according to ISDA's Web site.
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Shares in Japan Airlines plunged to a record low today amid rumours that Asia's biggest carrier could file for bankruptcy in an attempt to turn around its failing business, the Guardian reported. The transport minister, Seiji Maehara, and other cabinet ministers were this evening holding crisis talks to discuss JAL's options ahead of an official decision on the airline's future late next month.
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Bankruptcy has been proposed by a state-backed fund as an option in the restructuring of Japan Airlines Corp., two sources familiar with the matter said, Reuters reported. The state-backed Enterprise Turnaround Initiative Corp of Japan (ETIC) has been holding talks with creditor banks on how to revive JAL, and is expected to make a final decision on whether to support the struggling carrier next month.
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Pakistan’s National Accountability Bureau (NAB) is said to be under “immense pressure” not to pursue cases of wilful default of bank loans because some leaders of opposition parties and a number of Pakistan People’s Party (PPP) stalwarts were among defaulters, sources told Dawn on Sunday. They alleged that the NAB had put off a meeting scheduled for Wednesday to review default cases because of “government pressure”. Top NAB officials may meet later this week to decide how to deal with the cases of wilful default in the light of new government instructions.
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Chinese Premier Wen Jiabao warned of growing inflation expectations in a rare domestic media interview, expressing concerns about the nation's fast-rising real-estate prices and acknowledging that Beijing may be paying a price for its aggressive response to the global financial crisis, The Wall Street Journal reported. Speaking to the state-run Xinhua news agency on Sunday, Mr. Wen also flatly rejected foreign criticism of China's exchange-rate policy, saying that stability in the yuan's value helps the global economy and that China won't bow to pressure to let it appreciate.
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Aiful Corp. rose in Tokyo, adding to last week’s 35 percent gain, after Japan’s third-largest consumer lender reached an agreement with creditors that will help it avoid bankruptcy, BusinessWeek reported on a Bloomberg story. The Kyoto-based lender, which said Dec. 24 that creditors approved a plan to delay repayments on 279.1 billion yen ($3.05 billion) of debt, rose as much as 3.6 percent to 144 yen and traded at 140 yen at the 11 a.m. break in Tokyo. Aiful met 65 creditors in Tokyo last week and won approval to resume repaying its loans from Sept.
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When a Seattle-based Chinese language program in Beijing suddenly canceled classes and shut down, more than a dozen students were left stranded, though they had prepaid their tuition and housing, The Seattle Times reported. Now, the company's Seattle headquarters is closed, its phones disconnected and its Web site claims it has filed bankruptcy. The owners have moved to Sweden. Most of the 67 students — from all over the world — have either gone home or arranged for classes at other schools in Beijing, at additional expense.
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Aiful Corp., Japan’s third-largest consumer lender by assets, won approval from creditors for a debt restructuring plan that will enable it to avoid bankruptcy, according to two people with direct knowledge of the matter, BusinessWeek reported on a Bloomberg story. The Kyoto-based company met with about 70 creditors, including Goldman Sachs Group Inc., in Tokyo today and they agreed to allow the company to delay payments on 280 billion yen ($3.1 billion) of loans, said the people, who declined to be identified before an official announcement.
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Dubai must raise funds to feed its mushrooming debt but the Gulf emirate dreads imposing taxes to avoid breaking a business model that helped turn it from a lazy fishing town to a regional trade and tourism hub, Reuters reported. Selling some prized assets appears to be an easier option. Dubai, one of seven members of the United Arab Emirates federation, and state-linked firms owe an estimated $80 billion of debt borrowed to fuel a boom, when Dubai branded itself as a tax-free destination for foreign workers and businesses.
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Temirbank, a unit of BTA Bank, Kazakhstan’s second-biggest lender by assets, said its decision to default last month came after the value of bad loans on its books quadrupled, a Temirbank managing director said. Temirbank’s bad loans soared to 80.6 billion tenge ($543 million) in the third quarter from 22.2 billion tenge in the second, according to a filing on the Kazakhstan Stock Exchange Web site, BusinessWeek reported on a Bloomberg story. Erulan Kusainov said the increase followed the bank’s third-quarter decision to halt extensions made on “masses” of loans in 2008.
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