UBS AG's request for a ruling on credit contracts linked to Aiful Corp. was accepted by an international group governing swaps and derivatives, paving the way for debt holders of the consumer lender to get repaid.
The determinations committee of the International Swaps and Derivatives Association may decide this week whether Aiful's restructuring agreement with creditors is considered a "credit event," which would ensure payouts to holders, according to a statement on the association's Web site.
Holders of credit-default swaps on Kyoto-based Aiful, Japan's third-largest consumer lender by assets, were roiled in October after the committee rejected three requests to rule a credit event had occurred, citing a lack of publicly available information on which to make a judgment.
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