Credit-default swaps insuring debt of Victor Co. of Japan Ltd., a unit of JVC Kenwood Corp., will be paid out after the manufacturer restructured payment on its debt, the International Swaps & Derivatives Association said.
Victor triggered a so-called restructuring credit event when it agreed with its bondholders to extend the maturity of ¥12 billion in bonds last month, ISDA's Japan Determinations Committee ruled Wednesday. Out of 15 committee members, Goldman Sachs Group Inc. and JPMorgan Chase & Co. voted against the decision.
The ruling came after four meetings failed to reach a conclusion. This is the first credit event in Japan since consumer lender Takefuji Corp.'s bankruptcy triggered payout of the swaps in October 2010, and the first restructuring event since Aiful Corp. won approval from creditors for a debt restructuring plan in December 2009.