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The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Genting Hong Kong slides after reporting US$1.7b net loss. If the article mentions that Thai Airways International has defaulted recently, respond with 'AFTER'. If the article mentions that Thai Airways International will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Thai Airways International is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Thai Airways International is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Thai Airways International has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Thai Airways International. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

[HONG KONG] Genting Hong Kong, the cruise ship operator that halted all payments to creditors last year, dropped in the stock market on Monday after reporting a loss amid travel restrictions sparked by the pandemic. Its shares slid 2.2 per cent as of 10.59am in Hong Kong, outpacing a 0.7 per cent decrease in the benchmark Hang Seng Index. The company, controlled by Malaysian tycoon Lim Kok Thay, reported a net loss of US$1.7 billion and net operating cash outflow of US$629 million in audited results for the year ended December, according to a stock exchange statement Sunday. There are "material uncertainties which may cast significant doubt about the Group's ability to continue as a going concern," it said. The Covid-19 crisis has presented an existential challenge to the cruise industry as revenue all but evaporated for global giants including Carnival Corp. It's also forced dozens of peers in the aviation industry including Thai Airways International and Latam Airlines Group SA to restructure or seek bankruptcy. While travel within some countries is recovering as vaccination rollouts gather pace, a return to pre-pandemic levels could still take years as the virus mutates and governments take different approaches to opening borders. Genting Hong Kong said in the exchange filing that the group "is cautiously optimistic that the cruise industry will return to normalcy towards 2023." Current liabilities at the company exceeded assets by US$3.3 billion and borrowings with principal of US$3.4 billion were in default as of the end of 2020, it said. Cracks were already starting to show even before the cruise operator said in August that it was halting debt payments and asked creditors to form a steering committee to evaluate a planned restructuring proposal. The Genting group had to shut casinos and resorts around the world as countries imposed lockdowns to curb the spread of the coronavirus. Genting Hong Kong said earlier this month that its creditors and partners have given their formal written agreement for term sheets that outline arrangements for the company's debt and recapitalisation plan. It remains "optimistic a holistic consensual solvent restructuring proposal can be implemented by the first half of 2021," it said in the statement on Sunday. The coronavirus epidemic has forced the company to temporarily suspend almost all of its cruise operations and stopped or deferred the construction of ships in its pipeline, according to the statement. "Further resumption of the cruise operations is dependent on the development of the Covid-19 pandemic, including the travel restriction requirement of different countries," it said. The company said it may consider additional measures to improve its financial position including allotting new shares, raising liquidity through debt or equity sources, working with creditors to restructure debt, requests for debt holidays and the monetisation of non-core assets. REUTERS

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Thai Airways says court hearing on business restructuring moved to mid-June. If the article mentions that Thai Airways International Plc has defaulted recently, respond with 'AFTER'. If the article mentions that Thai Airways International Plc will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Thai Airways International Plc is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Thai Airways International Plc is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Thai Airways International Plc has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Thai Airways International Plc. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

Thai Airways International Plc said that the Central Bankruptcy Court will decide on its restructuring proposal on June 15, after Friday's hearing was postponed to allow for the assessment of complaints filed by creditors against the plan. "Creditors filed two complaints against the restructuring plan, which the court accepted," the airline said in a statement. "The Central Bankruptcy Court will suspend the review to allow planners and creditors to clarify the issues." Earlier this month, THAI creditors' approved a restructuring plan before it was sent to the bankruptcy court for review. The plan seeks to restructure 245 billion baht of debt through payment extensions, interest waivers, and debt-to-equity conversions. The airline was in difficulty well before the coronavirus pandemic grounded flights across the globe, booking losses nearly every year after 2012.

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Murky path towards post-pandemic recovery for some Southeast Asian airlines. If the article mentions that Thai Airways has defaulted recently, respond with 'AFTER'. If the article mentions that Thai Airways will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Thai Airways is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Thai Airways is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Thai Airways has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Thai Airways. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

BANGKOK: It has been more than a year since Captain Dejphon Poolpun last took to the skies. The Thai Airways pilot has not received any flying allowance at all, while his basic salary was cut as the company suffered billions of losses. The hiatus in flying has meant a complete change in his lifestyle. These days, he spends much of his time in the kitchen of his Bangkok home, where he bakes tray after tray of brownies for his online shop Flying Sweets. The business has found a sizable group of loyal customers. 'In the past year... I made more than US$3,000 a month,' he told CNA. 'In one day, I could sell 300 brownies when the business was booming.' Due to the pandemic, he lost 60 per cent of his salary as a pilot. Capt Dejphon's circumstances are not unique for those in the aviation industry. Across the region, many pilots and flight attendants have been laid off, while others are forced to take substantial pay cuts. Many had to supplement their income by selling food or other goods. While Capt Dejphon is one of the success stories of how airline employees were able to adapt to the sudden downturn, there are those who had to sell their houses and cars to pay off their debts. Meanwhile, airlines continue to suffer losses, forcing companies to downsize their fleet and employees and make drastic changes to their business strategies. Thai Airways, for example, had to file a business reorganisation petition to the country's Central Bankruptcy Court. Meanwhile, others like Malaysia Airlines and Garuda Indonesia have been engaged in negotiation processes with airplane leasing firms and creditors to restructure their loans. For some, there might be light at the end of the tunnel. Buoyed by the strong domestic market, Garuda Indonesia has said that it might be on its way to make a profit this year while pilots working for the airline said that their workload and salaries are slowly returning to normal. Meanwhile, Thailand is hoping to gradually reopen some parts of the country to foreign visitors in a bid to kickstart its tourism industry, one of the country's main economic sectors. But the path to recovery is still murky, said industry players and analysts interviewed by CNA. A new wave of COVID-19 infections could force governments to bring back travel restrictions, reduce customer confidence and derail plans to revive tourism. MASSIVE LOSSES The pandemic has caused a massive drop in the number of passengers worldwide and carriers from the region have not been spared. In 2019, Garuda carried more than 15 million passengers. Last year, the figure fell to 2.8 million. As a result, the company recorded a net loss of US$1.07 billion. It was a devastating blow for the Indonesian flag carrier, which in 2019 reaped a profit of US$122.4 million. Because of the pandemic, Garuda decided to lay off 700 permanent employees and contract workers while 15,000 others were forced to take a pay cut of up to 50 per cent. Garuda also liquidated six of its subsidiaries in a bid to streamline the company. 'The ongoing pandemic ' had compelled the company to create a number of adjustments,' Garuda CEO Irfan Setiaputra said in a statement on May 21. 'We have to take these steps to survive in this uncertain time.' In lieu of a bailout, the Indonesian government agreed to purchase US$600 million in newly issued bonds in November 2020, injecting fresh capital to the ailing company. At the time, Garuda already had negative net working capital and had liabilities exceeding 80 per cent of its assets. Thai Airways encountered even bigger losses. Although the company managed to carry 5.87 million passengers last year, the figure was a 76 per cent drop from 2019. The dramatic loss in passengers was one of the reasons why Thai Airways recorded a net loss of US$4.5 billion. The pandemic-induced financial woes forced Thai Airways to file a business reorganisation petition to the Central Bankruptcy Court in May last year. In its petition, the flag carrier declared its debt to be worth more than US$11.3 billion, as of March 31, which exceeded its assets. Since the submission, the airline has implemented various measures to cut costs and increase revenue. These include downsizing headcount from 29,000 to between 14,000 and 15,000, reducing the number of aircraft in its fleet and asking employees to take leave without pay. Meanwhile, according to the company's financial statements, Thai Airways only had US$278 million in cash and cash equivalents at the end of 2020, compared to US$695 million the year before. Bangkok-based aviation analyst Suwat Wattanapornprom of Asia Plus Securities said Thai Airways' cash on hand might only be enough to last the company until early 2022. This, he said, could lead to a liquidity issue once the country decides to reopen international flights. 'By that time, when flights resume, Thai Airways may not have enough cash on hand for the set-up. This is because once it begins the rehabilitation, it will stop paying the creditors. But this also means the company would be required to complete cash transactions for everything when it flies to any country,' Suwat told CNA. Malaysia Airlines might be facing an even trickier situation. The company has been recording losses for a decade, made worse by the twin tragedies of MH370's disappearance and the MH17 shoot-down in Ukraine in 2014. The Malaysian flag carrier was subsequently privatised and taken over by sovereign wealth fund Khazanah Nasional. Even before the pandemic hit, Khazanah Nasional admitted that its attempt to turnaround Malaysia Airlines Berhad was not on track, in a report released by the parliament's Public Accounts Committee, despite pouring in a total of US$1.5 billion. When asked by CNA on how COVID-19 has affected passenger numbers, Malaysia Airlines said that these figures are confidential. However, the Malaysian Aviation Commission (MAVCOM) publishes a quarterly Waypoint Report on the country's aviation industry. In December 2020, MAVCOM noted that all Malaysian carriers, including MAS, saw their passenger traffic drop to nearly zero in the second quarter of last year. The total number of passengers up until the third quarter is less than 5 million. As for losses, Malaysia Airlines has yet to file its 2020 financial statements with the Companies Commission of Malaysia. Its 2019 financials showed a revenue of RM9 billion but a net loss of RM923.79 million after tax. The pandemic prompted the company to introduce extensive salary cuts for the entire management team and employees and no-pay leave as early as March 2020. Malaysia Airlines stated that despite the reduced demand of overall capacity, there have been no layoffs. Captain Izham Ismail, the chief executive of Malaysia Airlines' parent company Malaysia Aviation Group's (MAG) told CNA in May that the airlines' overall passenger and fleet capacity has been cut by 90 per cent since October 2020. He also said in May that he expected it to remain at that level for the next six months. Some good news emerged in late January 2021 as MAG obtained approval from the High Court of England and Wales to convene a hearing with its creditors for a restructuring proposal. This was later followed by the court's clearance for MAG to move forward with the restructuring scheme, which will see MAG's sole shareholder Khazanah Nasional pumping in RM3.6 billion to fund MAG until 2025 'THERE WERE TIMES WE WOULDN'T FLY FOR WEEKS' A senior Garuda Indonesia pilot, Captain Muzaeni said 2020 was the worst year he had seen during his 32-year career with the company. 'Our basic salary was cut by 30 per cent,' the 54-year-old pilot, who like many Indonesians goes with one name, told CNA. 'Meanwhile, I was barred from flying because the company considered senior pilots like myself to be more susceptible (to COVID-19) than younger pilots.' The ban meant that he was not earning any flying allowances and bonuses, which he said can account to anywhere from one fifth to a half of what a flight crew makes each month. But even younger pilots and flight attendants were suffering from reduced flight hours. 'There were times when we wouldn't fly for weeks,' he recounted. Capt Muzaeni said he was fortunate that he still earned enough money to support his family. 'I didn't have any instalments or loans to pay but many of my peers did,' he said. 'There were many people who had to sell their cars or even sell their houses and have to move back to their parents' houses just to get by. There were many people who had to start an online food business to supplement their income because they weren't making enough money.' He said the challenging condition lasted for a few months during the early days of the pandemic when the government imposed tight travel restrictions. But slowly, the travellers, especially those on domestic routes, returned after the restrictions were eased. 'By December our basic salaries were restored back to the way they were before the pandemic. Today, no one is forced to sell food or goods online anymore,' he said. But pilots and flight attendants still face uncertainties regarding their flight time, which affects bonuses and allowances. Between May 6 and May 17, the Indonesian government imposed a tight travel restriction to prevent millions of people in the predominantly Muslim nation from heading to their hometown to celebrate the major Islamic holiday Idul Fitri. The restriction caused all Indonesian airlines to slash the number of flights by 90 per cent, according to figures from the Transportation Ministry. 'The condition is still unstable. No one knows for sure if or when these travel restrictions will be imposed again,' Capt Muzeni said. And there have been measures by the company to cut down the number of employees. In a statement issued on May 21, Garuda announced that it is offering an early retirement programme for volunteering employees. The company's CEO, Mr Setiaputra said in the statement that the early retirement programme is 'the best solution that we can offer to employees in the midst of this pandemic situation.' Meanwhile, Thai Airways has asked its employees to take leave without pay to help the company stay afloat. Capt Dejphon is one of the people who joined the programme. 'It can be 10 to 15 days, depending on what we want. Since the company's situation isn't so good, I try to take leave without pay as much as I can, which is about 10 days. So, in total more than half of my income is gone,' he said, adding that he only came to work for flight simulator trainings. But Capt Dejphon said that he has something to look forward to. He is scheduled to fly again in October, when Thailand aims to reopen parts of the country for international tourism. ROAD TO RECOVERY Malaysia Airlines' CEO told CNA that the company is embarking on a number of cost-cutting measures which include seeking payment deferrals and contract renegotiations. 'The group eventually embarked on a holistic restructuring of (Malaysia Airlines') balance sheet and cost structure in September,' Capt Izham said. This restructuring exercise, he said, helped reduce Malaysia Airlines' RM15 billion (US$3.6 billion) worth of liabilities and eliminated RM10 billion in debt, along with RM5.7 billion in total cost savings and costs avoidance. 'RM510 million has been achieved in Q1 2021 in cost savings and aircraft deferrals, and MAG is targeting another RM1 billion by the end of the year' Capt Izham said. In the meantime, as an alternative revenue stream, he said, Malaysia Airlines had started selling its Business Suite inflight products, from duvet sets, pyjamas and amenity kits, as well as the airline's signature satay dish and salted peanuts. The Malaysia Airlines CEO said the company is gearing up for a gradual recovery of its operations. 'We were planning to deploy more passenger and fleet capacity in the first half of 2021, to reach 30 per cent of 2019 levels, and 70 per cent by the second half,' he said. Meanwhile in Thailand, the Central Bankruptcy Court is expected to issue a ruling on Jun 15 on Thai Airways' rehabilitation plan. The company has said that the plan would enable the airline to generate profit once more by 2023. 'Under the preliminary rehabilitation plan, the company would return to profitability through the usual operations of its main business in 2023 and its shareholders' equity would value more than zero in 2030,' said its acting president Chansin Treenuchagron in a letter to the president of the Stock Exchange of Thailand (SET) in March. In the same letter, Mr Chansin said the company plans to restructure the company's capital and debt, including an incentive for creditors to exchange debt for ownership of the company. Thai Airways also plans to operate under a new vision, where it repositions itself as 'a private high-quality full-service carrier with a strong Thai brand'. Based on the company's statement in March, this will include redesigning its product to deliver 'a high-quality experience' at a lower cost and unbundling fares so that passengers can choose to pay for what they want, such as checked-in baggage and seat selections. The airline also plans to optimise its routes by only flying to profitable destinations and restructure the organisation to an appropriate size. It expects to slash about 50 per cent of its workforce as well as change its leases and fleet. Garuda Indonesia seems to be making a similar move. According to its September 2020 financial report, the airline was operating 210 aircraft in its fleet. The figure had been reduced to 142 recently as it returned some of its leased planes. The airline is reportedly looking to slash down its fleet even more and reduce the number of airplanes to 70. The company has refused to comment on the reports. With all these cost-cutting measures in place, Garuda has predicted that it will start to turn a profit by the end of the year. In a letter to the Indonesian Stock Exchange in February, the company highlighted that the number of passengers had gone from an average of 150,000 passengers per month during the early days of the pandemic to around 1 million passengers a month towards the end of 2020. Garuda hopes to carry around 7.5 million passengers this year ' about half of what it carried before the pandemic ' as the government gradually relaxes the country's travel restrictions. DARK CLOUDS PERSIST In an April press release, the International Air Transport Association (IATA) said it expects net airline industry losses of US$47.7 billion in 2021, an improvement over the estimated net industry loss of US$126.4 billion in 2020. The association added that it expects the aviation industry to begin to recover in the latter part of this year. Despite some hope for a modest recovery, those interviewed by CNA said many uncertainties remain. Yeah Kim Leng, a professor of economics at Sunway University Business School, noted that there was now some easing of pandemic-related turbulence for the airline industry, as vaccines increased in availability and travel restrictions have been eased in varying degrees. 'However, dark clouds still persist due to virus resurgence and vaccine supply shortages, but the airline industry is seeing light at the end of the tunnel, although this might be longer compared to other industries hit by COVID-19,' Prof Yeah told CNA. In the short term, the outlook for air travel in the ASEAN region, he said, seemed challenging due to quarantine measures, restricted or even closed borders. 'Given that the recovery in air travel is strongly tied to the relaxation of COVID-19 travel restrictions, the regional carriers will have to be financially prepared to face another year or two of operating losses,' Prof Yeah added. Jakarta-based aviation analyst Alvin Lie added that airlines around the world have already done what they could to mitigate the decline in passengers and steep financial losses. 'Airlines have been cutting back on their resources and services, selecting only routes which make economic sense while branching out into other sectors like cargo. They have renegotiated their loans, tried to return leased planes, deferred payments to investors and some applied for government bailouts. They are now in a survival mode,' Mr Lie noted. 'The pandemic however meant that the condition is unstable. There could be more travel restrictions in the future. This has a very huge impact on an airline's performance because some airlines depend on peak seasons like Chinese New Years and Idul Fitri, times when these travel restrictions are usually in place.' Mr Lie believed that there is nothing more an airline could do at this stage adding that the onus is now on the governments to keep the pandemic under control. 'Governments only need to mitigate COVID-19 well and do so consistently. If they can manage the pandemic well, tourists will come. But in today's condition, no matter how much promotion an airline does, no one will come,' he said. COVID-19 have changed the way people travel, socialise and interact and Mr Lie believed that some of these changes are here to stay, even after the pandemic is over. 'People now realise that in some circumstances, we don't need to meet face-to-face. We can do things quicker and more efficiently by meeting online without sacrificing quality and effectiveness,' he said. 'People will still travel. Humans are social creatures after all. They need to meet loved ones. They need to go on holiday. But for business travel, the pattern is changing and airlines have to be ready for these changes.' Thai Airways' Capt Dejphon said that he welcomes the potential changes in airlines culture and mindsets brought about by the pandemic. 'COVID-19 has brought a good opportunity,' he said. 'It's like performing surgery on a patient ' operate on the organisation, remove the old system and have a fresh start.' Download our app or subscribe to our Telegram channel for the latest updates on the coronavirus outbreak: https://cna.asia/telegram

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Court approves Thai Airways plan for makeover of $12.9 billion debt. If the article mentions that nan has defaulted recently, respond with 'AFTER'. If the article mentions that nan will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. nan is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. nan is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. nan has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of nan. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

BANGKOK (Reuters) -Thai Airways International Pcl won court approval on Tuesday to restructure a debt load of $12.9 billion as the airline, which is already in bankruptcy protection, seeks to turn around its fortunes. The court ruling removes the last hurdle to implementation of the plan, seen as critical for the carrier which last year posted a record loss of about $4.5 billion. In its order, the Central Bankruptcy Court in Bangkok said it approved the rehabilitation plan. It did not make any changes to the plan that had been approved by creditors. A hearing was postponed after two complaints filed against the plan by certain creditors. 'We are satisfied with the decision,' Somboon Sangrungjang of law firm Kudun and Partners, which represents 87 saving cooperatives, told Reuters. A committee of five, including the airline's acting chief executive Chansin Treenuchagron and its former CEO, Piyasvasti Amranand, will administer the plan, which covers the airline's debt of 400 billion baht ($12.86 billion). Piyasvasti helmed the airline the last time it was profitable from 2009 to 2012. The airline was in difficulty well before the coronavirus pandemic grounded many flights across the globe, booking losses nearly every year after 2012. The restructuring plan for 170 billion baht worth of debt relies heavily on debt extensions and debt-to-equity conversions, and limits most of the haircuts to late interest payments, Somboon said. The airline was also reducing debt with airplane lessors. Leasing agreements for 16 jets were being cancelled and the debt was being negotiated, Chief Financial Officer Chai Eamsiri told a news conference. The airline was in talks with government and private financial institutions to obtain 50 billion baht in new capital to support its cash flow, he added. In March, the carrier said it planned to cut its fleet size to 86 jets by 2025 from 103 now. Thai Airways says it has cut 30 billion baht in expenses. The Thai government holds a 47.86% stake in the carrier, but it is not governed by the country's state-enterprise law. Thai Airways this month resumed routes between European cities and the resort island of Phuket in Thailand, anticipating a government scheme to allow vaccinated tourists to skip a mandatory quarantine. It expects to carry about a thousand passengers in July. Analysts blame internal inefficiencies for the carrier's trouble with budget and long-haul rivals. 'Thai Airway's challenges are mainly institutional and inefficiency. The airline should rely less on government support to ward off external influence and professionalise management,' said Ben Kiatkwankul of the Maverick Consulting Group business advisory firm. 'The Phuket tourism sandbox flights will be an initial test.' ($1=31.1000 baht)

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Court nod paves way for makeover of THAI B400bn debt. If the article mentions that Thai Airways International has defaulted recently, respond with 'AFTER'. If the article mentions that Thai Airways International will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Thai Airways International is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Thai Airways International is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Thai Airways International has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Thai Airways International. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

Thai Airways International won court approval on Tuesday for restructuring its 400-billion-baht debt load as the airline that is already under bankruptcy protection seeks to turn around its fortunes. The court ruling removes the last hurdle to the implementation of the plan, seen as critical for the carrier which last year posted a record loss of about 141.2 billion baht. The Central Bankruptcy Court in Bangkok said in its order it approved the rehabilitation plan. The court did not make any changes to the plan that was previously approved by creditors. A hearing was postponed after two complaints were filed against the plan by certain creditors. "We are satisfied with the decision," Somboon Sangrungjang of law firm Kudun and Partners, which represents 87 saving cooperatives, told Reuters. The plan covers the airline's debt of 400 billion baht, he said. A committee of five, including the airline's acting chief executive Chansin Treenuchagron and its former CEO, Piyasvasti Amranand, will administer the plan. Mr Piyasvasti helmed the airline the last time it was profitable in 2009 to 2012. The airline was in difficulty well before the coronavirus pandemic grounded many flights across the globe, booking losses nearly every year after 2012. The restructuring plan, which relies heavily on debt extensions and debt-to-equity conversions, limits most of the haircuts to late interest payments. The carrier said in March it plans reduce its fleet size to 86 jets by 2025 from the current 103. Thai Airways says it has cut 30 billion baht in expenses. The Thai government holds a 47.86% stake in the carrier, but it is not governed by the country's state-enterprise law. Thai Airways is due to hold a news conference later on Tuesday. The airline this month resumed routes between European cities and Phuket in anticipation of a government scheme to allow vaccinated tourists to skip a mandatory quarantine. THAI shares have been suspended from trade since May 18 this year. They last traded??at 3.32 baht each.

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Analysis: Cash-rich Singapore Airlines aims for regional dominance as rivals pull back. If the article mentions that Thai Airways has defaulted recently, respond with 'AFTER'. If the article mentions that Thai Airways will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Thai Airways is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Thai Airways is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Thai Airways has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Thai Airways. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

(Reuters) - Singapore Airlines Ltd (SIA), flush with $16 billion raised since the start of the pandemic thanks to help from a state investor, is in a position of dominance among its Southeast Asian rivals as they downsize and restructure. The crisis threatened the survival of hub carriers that lack domestic markets such as SIA, Hong Kong's Cathay Pacific Airways Ltd and Dubai's Emirates. Indeed, Singapore Prime Minister Lee Hsien Loong last year said the government would 'spare no effort' to ensure SIA made it through the pandemic. Its majority shareholder, government-owned investment arm Temasek Holdings underwrote one of the world's biggest airline rescue packages. Thanks to that, SIA's has enough funds to keep going for at least two more years without cuts, and is modernising its fleet to save fuel, reduce maintenance costs and meet environmental goals while other airlines shed aircraft. 'The crisis shows the importance of having a cash-rich state investor as its main backer,' said a banker, who was not authorised to speak with media and spoke anonymously. SIA's cash pile is the envy of rivals like Thai Airways and Garuda Indonesia, which have received little government support. Many of SIA's rivals are trimming fleets to a level that could ultimately weaken their hubs and send more connecting traffic to Singapore. 'Basically what these airlines are trying to do is they are trying to ward off their debtors,' said Subhas Menon, director general of the Association of Asia Pacific Airlines. SIA, meanwhile, is improving its fleet and bolstering its budget carrier, Scoot. In Europe and North America, leisure travel has led a recovery; if that holds true in Asia, budget carriers will be crucial for airlines. Having culled older planes and cut 20% of staff last year, SIA is under less immediate pressure for more downsizing. CEO Goh Choon Phong in May described last year's job cuts as a 'very painful process' and said there were no plans for more. But analysts say it could take 12 to 18 months for widespread travel to resume in Asia. 'They can survive for two or three years without making any money,' CAPA Centre for Aviation Chairman Emeritus Peter Harbison said. 'But at a certain stage you say, 'is it really worth it? Shouldn't you take tough steps?'' Less than 9% of rights sold in SIA's recent S$6.2 billion convertible bond issue went to shareholders other than Temasek, showing the state investor is more patient than others about achieving returns. Bumpy ride for Southeast Asia's national carriers here SIA deferred S$4 billion of spending on new planes over three years after reaching agreements with manufacturers Airbus SE and Boeing Co. But because of large pre-crisis orders, it is still spending S$3.7 billion on new aircraft and adding at least 19 planes to its fleet this year, including 13 widebodies, despite little demand. By contrast, Germany's larger Lufthansa, which earned nearly four times as much revenue annually pre-COVID, has a capital spending budget of about 1.5 billion euros ($1.77 billion) for 2021. SIA's financial cushioning makes it harder to push back on contracts with manufacturers and lessors. Temasek supports fleet modernisation. With travel in a holding pattern and rivals distracted by financial issues, Scoot has been using some of SIA's cash to boost staff training and invest in new software that helps it calculate more profitable fares for connecting flights. 'There has been a lot of investment, which is certainly geared toward a future recovery,' Scoot CEO Campbell Wilson said. 'Those investments I hope will pay off as time passes.' Thai Airways lost significant market share to budget rivals in the decade before the pandemic, contributing to years of losses, and has yet to formulate a fresh low-cost strategy as part of a restructuring involving $12.9 billion of debt. Garuda, Malaysia Airlines and Philippine Airlines are in similar positions, either having completed or about to launch major restructurings. They lost money for years before the pandemic. 'Presumably in shedding their liabilities they will create some unhappy people who were owed money that was never paid,' Wilson said. 'The extent to which that subsequently constrains them, time will tell.' ($1 = 1.3427 Singapore dollars) ($1 = 32.0300 baht) ($1 = 0.8461 euros)

NO

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Singapore Airlines in position of strength as rivals pull back: Analysts. If the article mentions that Thai Airways has defaulted recently, respond with 'AFTER'. If the article mentions that Thai Airways will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Thai Airways is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Thai Airways is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Thai Airways has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Thai Airways. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

Singapore Airlines (SIA), flush with US$16 billion (S$21.6 billion) raised since the start of the COVID-19 pandemic thanks to help from Temasek Holdings, is in a position of strength among its Southeast Asian rivals as they downsize and restructure, analysts said. The crisis threatened the survival of hub carriers that lack domestic markets such as SIA, Hong Kong's Cathay Pacific Airways and Dubai's Emirates. Indeed, Prime Minister Lee Hsien Loong last year said the government would "spare no effort" to ensure SIA made it through the pandemic. Its majority shareholder, government-owned investment arm Temasek Holdings underwrote one of the world's biggest airline rescue packages. Thanks to that, SIA has enough funds to keep going for at least two more years without cuts, and is modernising its fleet to save fuel, reduce maintenance costs and meet environmental goals while other airlines shed aircraft. "The crisis shows the importance of having a cash-rich state investor as its main backer," said a banker, who was not authorised to speak with media and spoke anonymously. SIA's cash pile is the envy of rivals like Thai Airways and Garuda Indonesia, which have received little government support. Many of SIA's rivals are trimming fleets to a level that could ultimately weaken their hubs and send more connecting traffic to Singapore. "Basically what these airlines are trying to do is they are trying to ward off their debtors," said Subhas Menon, director general of the Association of Asia Pacific Airlines. SIA, meanwhile, is improving its fleet and bolstering its budget carrier, Scoot. In Europe and North America, leisure travel has led a recovery; if that holds true in Asia, budget carriers will be crucial for airlines. Having culled older planes and cut 20 per cent of staff last year, SIA is under less immediate pressure for more downsizing. CEO Goh Choon Phong in May described last year's job cuts as a "very painful process" and said that there were no plans for more. But analysts say it could take 12 to 18 months for widespread travel to resume in Asia. "They can survive for two or three years without making any money," CAPA Centre for Aviation chairman emeritus Peter Harbison said. "But at a certain stage you say: 'Is it really worth it? Shouldn't you take tough steps?'" Less than 9 per cent of rights sold in SIA's recent S$6.2 billion convertible bond issue went to shareholders other than Temasek, showing the state investor is more patient than others about achieving returns. MODERN FLEET SIA deferred S$4 billion of spending on new planes over three years after reaching agreements with manufacturers Airbus and Boeing. But because of large pre-crisis orders, it is still spending S$3.7 billion on new aircraft and adding at least 19 planes to its fleet this year, including 13 wide-bodies, despite little demand. By contrast, Germany's larger Lufthansa, which earned nearly four times as much revenue annually pre-pandemic, has a capital spending budget of about ???1.5 billion (US$1.77 billion) for 2021. SIA's financial cushioning makes it harder to push back on contracts with manufacturers and lessors. Temasek supports fleet modernisation. BUDGET ADVANTAGE With travel in a holding pattern and rivals distracted by financial issues, Scoot has been using some of SIA's cash to boost staff training and invest in new software that helps it calculate more profitable fares for connecting flights. "There has been a lot of investment, which is certainly geared toward a future recovery," Scoot CEO Campbell Wilson said. "Those investments I hope will pay off as time passes." Thai Airways lost significant market share to budget rivals in the decade before the pandemic, contributing to years of losses, and has yet to formulate a fresh low-cost strategy as part of a restructuring involving US$12.9 billion of debt. Garuda, Malaysia Airlines and Philippine Airlines are in similar positions, either having completed or about to launch major restructurings. They lost money for years before the pandemic. "Presumably in shedding their liabilities they will create some unhappy people who were owed money that was never paid," Wilson said. "The extent to which that subsequently constrains them, time will tell."

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled THAI sells more planes. If the article mentions that Thai Airways International has defaulted recently, respond with 'AFTER'. If the article mentions that Thai Airways International will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Thai Airways International is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Thai Airways International is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Thai Airways International has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Thai Airways International. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

Cash-strapped Thai Airways International (THAI) is putting three aircraft along with a flight simulator up for sale, as a part of its financial rehabilitation plan and the ongoing push to modernise its ageing fleet, a source in the company said. According to the source, the ailing carrier has listed three of its Airbus A330-300s -- aged 12.2, 12.5 and 12.6 years, respectively, for sale -- along with a flight simulator for the aircraft model. THAI has 15 A330-300s in its fleet, but they wide-bodied jets are currently grounded because of the minimal demand for air travel amid the ongoing Covid-19 pandemic. In total, the flag-carrier has put up 34 of its aircraft for sale since November last year, including 10 Boeing 747-400s, six Boeing 777-200s, and six Boeing 777-300s. It has also let go of its six Airbus A340-600ds, three A340-500s, two Boeing 737-400s and an Airbus A300-600. THAI had been haemorrhaging money for years, and last year it sought the help of the Central Bankruptcy Court, after the Covid-19 pandemic forced the grounding of its entire fleet. The airline's independent director, Piyasvasti Amranand, who is one of the airline's rehabilitation plan administrators, went on Facebook saying that THAI can sell 10 Boeing 747s if the Transport Ministry approves their sale. However, Transport Minister Saksayam Chidchob said the ministry has not received any request of that nature.

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled 'Back to work': Airline staff look forward to Thailand's Nov 1 reopening. If the article mentions that Thai Airways International Pcl has defaulted recently, respond with 'AFTER'. If the article mentions that Thai Airways International Pcl will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Thai Airways International Pcl is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Thai Airways International Pcl is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Thai Airways International Pcl has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Thai Airways International Pcl. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

BANGKOK, Oct 28 (Reuters) - From engineers to pilots, Thailand's aviation industry is gearing up for a grand reopening on Monday when the tourism-reliant country will welcome vaccinated arrivals without quarantine, ending nearly 19 months of strict entry rules. "It's something everybody's waiting for," said Puttipong Prasarttong-Osoth, president of the Thai airline association, which has seven members, including Thai Smile Airways, Thai AirAsia (AAV.BK), (AIRA.KL) and Thai VietJet Air. Prime Minister Prayuth Chan-ocha announced this month that vaccinated arrivals from 46 countries would be allowed entry without quarantine from November. read more Airlines have responded quickly, bringing back jets from hibernation, or long-term parking, where they have been kept with their engines covered for protection and systems wound down. "It is in our DNA, it's easy to come back and reinstate," said Thai AirAsia Head of Engineering Banyat Hansakul, referring to the routine of preparing the planes. "It's like riding a bicycle." Already, Thai AirAsia had been using 10 jets from its fleet of 60, while Bangkok Airways (BA.BK) was flying 13 planes of a total 38, mostly for domestic travel after a pilot project that reopened Phuket and Samui islands in July. Both airlines expect to use more planes in the months ahead anticipating greater travel with passengers from neighbouring Cambodia, Singapore and Malaysia as restrictions ease. Flag carrier Thai Airways International Pcl (THAI.BK) has rolled out a winter schedule with Bangkok routes to London, Munich, Sydney and Tokyo. Though optimism about initial tourist arrival numbers is tempered, with other countries still observing quarantine measures, Thai AirAsia pilot Wirote Teerawattananon, 30, said he was content. "I'm happy to go back to flying again, tourists are coming back, so we get to come back to work," he said. Thailand welcomed about 40 million foreign arrivals in 2019. This year the government is targeting just 100,000. COVID-19 has cost Thailand, one of Asia's most popular destinations, an estimated $50 billion a year in tourism revenue. Its airlines have also suffered heavy losses. Thai Airways and low-cost affiliate Nok Air Pcl (NOK.BK) are undergoing bankruptcy-protected restructuring. Another airline, NokScoot, entered liquidation last year. read more "I'm really looking forward to the return of foreigners," said Thai AirAsia crew member, Kohchamon Pithayapipat. "Foreign spending can provide income to even small and medium businesses."

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Thai Airways to sell 42 jets, cut workforce to reduce costs. If the article mentions that Thai Airways has defaulted recently, respond with 'AFTER'. If the article mentions that Thai Airways will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Thai Airways is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Thai Airways is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Thai Airways has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Thai Airways. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

BANGKOK (Reuters) - Thai Airways International Pcl will sell 42 planes and cut nearly a third of its workforce as part of a plan to slim down the fleet and cut costs, the head of its restructuring committee said on Monday. The airline, which was in difficulty well before the pandemic struck, is going through a bankruptcy-protected restructuring. Piyasvasti Amranand, who is leading the effort, said that the planes being sold are old and not energy efficient. He said 16 jets on lease will be returned. After the sale, the airline will have 58 planes across four types. Thai Airways has been losing money nearly every year since 2012. Piyasvasti said the airline planned to add more flights especially from Europe over the next few months as travel recovers. On Monday, the Thai government reopened the country for quarantine-free travel for vaccinated tourists. Piyasvasti said that Thai Airways will reduce the number of workers from 21,300 to 14,500 by December 2022. To help with cash flow, the airline will conclude a 25 billion baht ($749.18 million) credit agreement with financial institutions by next year and is in talks with the government for an additional 25 billion baht, he said. The airline booked a profit of 11.1 billion baht ($332.63 million) in the six months ending in June from a loss of 28 billion baht during the corresponding period a year earlier after reducing expenses. ($1 = 33.3700 baht)

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Accommodations across Siem Reap reopen to initial trickle of guests. If the article mentions that Thai Airways has defaulted recently, respond with 'AFTER'. If the article mentions that Thai Airways will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Thai Airways is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Thai Airways is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Thai Airways has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Thai Airways. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

Siem Reap's accommodation services sector is showing more encouraging signs of recovery, as a wave of reopenings drives up the number of available hotel and guesthouse rooms in the province to nearly 30,000, according to official sources. This comes after plans to fully reopen the Kingdom across all sectors kicked off last month, and as an ambitious $150 million 38-road project in the province nears completion, both of which many hope will spur domestic and international tourism. But not all private sector actors are convinced that the sector has the upward momentum indicated by the authorities. As of December 8, nearly 20,000 hotel rooms and 8,000 guesthouse units are available, after the establishments had been closed for nigh on two years due to Covid, which has plagued the global tourism industry, the Siem Reap provincial Department of Tourism reported. Department director Ngov Sengkak shared that on any given weekend or national holiday there are typically about 6,000 travellers in the province, which he highlighted abounds in nature and heritage tourism potential. 'Currently, all segments ' including services, restaurants, hotels and guesthouses ' have resumed operations, which will help boost the national economy,' he said, noting that Covid has ravaged the province's tourism sector, shuttering 80-90 per cent of hotels and guesthouses. But Cambodian Hotel Association president Din Somethearith noted that the number of visitors to the province nowadays are scant, even with hotels and guesthouses up and running. 'They've started up their businesses, but there's just no international guests. Of note, the number of Cambodian holidaymakers is very small compared to the loads of hotel and guesthouse rooms on hand, and we Cambodians only go on trips during festivals. 'In Siem Reap, many hotels used to receive nearly three million visitors a year. That has now fallen by more than 90 per cent,' he told The Post on December 9. On the other hand, he underscored that with reopening plans afoot, airlines are preparing to fly back into the Kingdom, which he said would bode well for hotels and guesthouses that plan to open their doors later this month or early in January. He noted that Thai Airways and Singapore Airlines are set to resume flights to Cambodian soon, including to Siem Reap. However, the Kingdom is on tenterhooks to hear from scientists just how bad the recently-detected SARS-CoV-2 B.1.1.529 variant, or Omicron, will be, and concerns linger over how the government could respond, and what this will mean for the battered tourism sector. New quarantine measures could mean that many would-be visitors to the province may have to adjust their travel plans, Somethearith said. Similarly, Pacific Asia Travel Association (Pata) Cambodia chapter chairman Thourn Sinan suggested that the provincial tourism department's report could have overstated the number of open hotels and guesthouses. He said three- and four-star hotels had yet to reopen due to the limited number of tourists to the province. 'Given my observations, I do not agree with the Siem Reap provincial Department of Tourism. There's still a high risk in Siem Reap, bearing in mind that not many local sightseers visit regularly ' unlike in southwestern provinces such as Kampot and Kep ' save for major festival seasons.' Reopening plans may have not brought in as many international tourists as some had anticipated, he said, noting that few have booked flights for this month or early 2022 due to Omicron fears. Last year, 259 hotels comprising 14,453 rooms and 294 guesthouses containing 3,171 units were closed nationwide, and the worst-affected areas were the capital and the provinces of Siem Reap, Svay Rieng, Kampot, Banteay Meanchey and Battambang, the Ministry of Tourism reported.

NO

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled THAI auctions the bare bones. If the article mentions that Thai Airways International has defaulted recently, respond with 'AFTER'. If the article mentions that Thai Airways International will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Thai Airways International is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Thai Airways International is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Thai Airways International has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Thai Airways International. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

The financially troubled Thai Airways International (THAI) will on Wednesday auction off the airframe of an old Boeing 737-400, according to its TG Warehouse Sale Facebook page. The post said the sale presents a rare opportunity for an interested party to own the airframe of a single-aisle plane which has had long a long history with the national carrier. It said the outer shell could be converted into a cafe or stand as an attraction in a resort. The auction is being held on Facebook Live at 3pm on Wednesday. In March, the airline earned over 1 million baht in under a minute by selling passenger seats stripped from its decommissioned aircraft. Thirty pairs of seats in different colours, including the airline's signature purple and pink, were quickly snapped up during a live-streaming session on the Facebook page TG Warehouse Sale. THAI has sold or is in the process of selling 45 jets, leaving it with 58 aircraft, excluding three 777-300 aircraft it leased last month. Last week, the carrier posted a 155% increase in revenue and a narrower loss in the first quarter of this year with liquidity surging to the highest point since the company filed for bankruptcy in 2020.

NO

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Bruised THAI aims for the skies again. If the article mentions that Thai Airways International Plc has defaulted recently, respond with 'AFTER'. If the article mentions that Thai Airways International Plc will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Thai Airways International Plc is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Thai Airways International Plc is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Thai Airways International Plc has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Thai Airways International Plc. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

Thai Airways International Plc (THAI) is aiming to resume its position as one of the world's top ten airlines after the completion of its rehabilitation process, the national flag carrier's executives said. The airline has planned to secure strategic partnerships with various private firms, including Thailand's largest energy conglomerate PTT Plc, as part of its business rehabilitation scheme. The carrier will tomorrow ask creditors to approve its revised rehabilitation plan which is a crucial stage for the airline's financial recovery. "There is likely not a problem [for the plan approval]. The plan is the way to rehabilitate the company's financial status and benefit the creditors," said Piyasvasti Amranand, chairman of THAI's committee overseeing the airline's rehabilitation plan. Mr Piyasvasti told the Bangkok Post that THAI had slipped to be among the world's top 30 airlines as it entered into its rehabilitation process. This has all occurred amid the protracted Covid-19 pandemic which has considerably impacted the global airline business, he said. Mr Piyasvasti admitted that entering a court rehabilitation process has affected the airline's operations and services, resulting in negative reviews from passengers about the airline. "The plan is the way to rehabilitate the company's financial status and benefit the creditors." ' Piyasavasti Amranand, Chairman of Thai's comittee overseeing the airline's rehabilitation plan For example, he said, the company could not refund passenger tickets after its flights were unable to operate during the pandemic due to restricted conditions under its debt rehabilitation processes. But the company has seen business improve significantly, thanks to rebounding tourist arrivals and the reduction of costs due to business restructuring. Mr Piyasvasti said the carrier has turned from a 9-billion-baht loss??in earnings before interest, taxes, depreciation and amortisation (EBITDA) posted in the second quarter of 2021 to a profit of 168 million baht in the same period of this year. Continuous improvements have been seen in July and August. THAI's acting Chief Executive Officer Suvadhana Sibunruang expressed his confidence that the airline would reclaim its rank in the world's top 10 after the rehabilitation process was completed and when the company's shares resume trading in the market in 2025. Over the past few years, the airline underwent corporate restructuring to reduce costs and improve its efficiency. Part of the cost reductions was a mutual separation programme which resulted in a reduction of staff from 29,000 to 14,400 at present, including 3,800 crew members and about 900 pilots. That lowered the payroll from 2 billion baht per month to about 700 million baht currently. THAI also downsized its fleet from 103 planes to 61, of which 20 belong to its subsidiary Thai Smile Airways. As part of THAI's debt restructuring, the carrier is eyeing potential candidates to begin its first-ever private partnership deal. The most likely firm is national oil and gas conglomerate PTT because it already has excess capital to quickly inject and reinvigorate the troubled airline. THAI has been in talks with other potential partners including some foreign companies to serve as its strategic partner and shareholders in order to diversify its businesses into various related areas such as logistics, catering, and cargo shipping. Mr Piyasvasti said after the rehabilitation, the Finance Ministry will maintain ownership of no more than 50% of the airline, ending the airline's status as a state-owned enterprise. However, the government will remain the majority shareholder with a combined stake of 43%, including 33% held by the Finance Ministry and the remaining 10% belonging to Krungthai Bank (KTB) and other state-owned shareholders. So far, passenger numbers have significantly rebounded, particularly from European routes which account for around half of THAI's total revenue. The remainder includes 20% from northeastern Asia routes, including Hong Kong, Japan, South Korea, and Taiwan; 10% from southern Asia routes such as India and Pakistan; 10% from southeastern routes such as Indonesia; and the other 10% from Australia and elsewhere. So far, THAI's major markets that have maintained restrictions for overseas travelling are China and Japan, Mr Piyasvasti added. Suvadhana: Wants a top-10 ranking THAI entered bankruptcy last year to restructure 400 billion baht of debt. Under the revised restructuring plan, THAI is aiming to seek a new term loan of up to six years and / or a bond with the same maturity term of up to 12.5 billion baht. It may also seek a revolving facility of up to the same amount. THAI also aims to increase its capital registration by approximately 31.5 billion shares with the aim of positive equity for the stability of its financial status. As a result, THAI shares would be able to resume trading on the Stock Exchange of Thailand. The carrier expects to receive the total equity from debt and capital restructuring under the proposal by 80 billion baht and complete its capital restructuring by 2024. If this process can be completed under the proposed plan amendment, THAI's equity would be positive in 2024 and shares would likely be traded again in 2025. In the second quarter, THAI and its subsidiaries reported total revenue excluding one-time transactions of 21.5 billion baht, up 282% year-on-year. Net losses of 3.2 billion baht were recorded over the period, compared to a net profit of 23.3 billion in the same period of last year, due to the one-time transactions with a net profit of 27.1 billion in that quarter.

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled THAI angles for a return to global glory. If the article mentions that Thai Airways International has defaulted recently, respond with 'AFTER'. If the article mentions that Thai Airways International will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Thai Airways International is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Thai Airways International is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Thai Airways International has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Thai Airways International. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

Troubled national carrier Thai Airways International (THAI) is aiming to make a comeback and reach a top 10 global ranking for airlines. The Bangkok Post recaps the airline's descent to bankruptcy protection in 2020 and explains THAI's attempts to turn things around. Q: What happened to THAI in 2020? THAI filed for bankruptcy protection in May 2020 at the Central Bankruptcy Court. The anticipated move came after the formerly state-owned enterprise received cabinet approval to undergo a rehabilitation process. RELATED The airline was mired in financial woes for a number of years. A Stock Exchange of Thailand (SET) filing revealed THAI's assets tallied 256 billion baht at the end of 2019 and its debt-to-equity ratio skyrocketed to 21:1. The firm's financial struggle was exacerbated by the pandemic, with strict air travel regulations leading the airline to suspend flights as tourism disappeared. THAI's earnings report in the first half of 2020 showed a major loss of 28 billion baht. Initially the government planned to bail out THAI, but it faced severe criticism from the public. The cabinet later insisted it avoided throwing a financial lifeline to the airline because it needed the money for relief schemes to ease the impact of Covid-19 shutdowns, aiming to reinvigorate the economy. The court-dictated rehab in 2020 reduced the Finance Ministry's majority stake in THAI and cost the airline its state enterprise status, but it saved THAI from creditors. Q: How does the airline restructure its massive debt? The airline received the go-ahead for its original rehabilitation plan from the Central Bankruptcy Court in mid-June 2021 to restructure its 400-billion-baht debt. The restructuring efforts rely heavily on debt payment extensions, interest waivers and debt-to-equity conversions. Other methods of raising capital include selling off assets and downsizing its fleet and workforce, among others. One interesting footnote is it took more than a year for the rehabilitation plan to be approved by authorities, attributed to extensive negotiations with creditors determined to emphasise the state's role in helping the struggling flag carrier secure vital loans. The creditors managed to agree that THAI should be allowed to operate all its businesses with the same privileges it enjoyed before it ceased operations as a state-owned enterprise and entered the debt rehabilitation process. They also amended clauses relating to the company's financial management, which they deemed necessary to facilitate the repayment of outstanding obligations and procurement of fresh loans to maintain the airline's cash balances. Q: What is the update on THAI's financial performance? Since the rehabilitation efforts began, things have started to turn around for THAI. The airline improved its performance in the second quarter of 2022, with revenue totalling 21.5 billion baht, up 282% from the same period last year. The national carrier also reported a jump in revenue from passenger and cargo services of 619% to 19.8 billion baht. The rise was attributed chiefly to higher factory production and cargo volumes. Total operating expenses, excluding one-time transactions, were 22.8 billion baht, or 126% higher than the same period last year. This increase was mostly attributed to the sharp hike in jet fuel prices, which rose by 104%, resulting in 8.9 billion baht for jet fuel expenses, or 39.2% of total operating expenses. Profit from earnings before interest, taxes, depreciation and amortisation (Ebitda) after the deduction of aircraft leases stood at 168 million baht, a big improvement from last year's Ebitda's loss of 9.2 billion baht. It represents the first such profit after the company entered rehabilitation. THAI and its subsidiaries reported financial costs of 3.1 billion baht and had one-time transactions with net profit totalling 1.9 billion baht, consisting of profits from debt restructuring, organisational restructuring, a personnel compensation structure, and sales of investment and assets, despite losses from asset impairment and the foreign exchange rate. Q: Does Thailand's tourism rebound help THAI? The steady rebound of the aviation industry, helped largely by easing travel restrictions in most countries, is driving up customer demand for THAI, which has been progressively restoring flights. In mid-August of this year, THAI announced the airline and its subsidiaries' available seat kilometres in the second quarter of 2022 tallied a 367% increase year-on-year, while revenue passenger km were up 1,767%. The cabin factor averaged 60.3%, a significant surge from 15.1% year-on-year. During the second quarter, the airline flew 2.01 million passengers, or 570% more year-on-year. Before the pandemic, THAI averaged roughly 19 million passengers annually. The airline targets 9.18 million passengers next year, 11.8 million in 2024 and 12.4 million in 2025. THAI expects 4.48 million passengers for the full 2022. Q: What does the new rehabilitation plan include? On Sept 1, the creditors of THAI approved a new rehabilitation plan in what the airline called a major step forward on its flight back to full recovery. The amended plan, which was submitted to the Central Bankruptcy Court in July, included a plan to borrow 12.5 billion baht over six years and another 12.5 billion in the shorter term. It also calls for debt-for-equity swaps totalling 37 billion baht, or about 25% of its more than 100 billion baht in debt. Piyasvasti Amranand, chairman of the THAI panel overseeing the court-monitored debt plan, said on July 1 the amended version was needed after the airline reported a better than expected recovery from the financial crisis. In the previous plan, THAI expected to face a cash deficit of 50 billion baht and planned to borrow 25 billion from state-owned lenders, with the rest from private financial institutions. However, the airline realised it would be difficult to successfully obtain the full amount of loans required and worked to sell a number of assets and old aircraft, bringing in more than 9 billion baht. As part of THAI's debt restructuring, the carrier is also considering potential candidates to begin its first private partnership deal. The most likely firm is the national oil and gas conglomerate PTT because it already has excess capital for a quick injection to reinvigorate the troubled airline. THAI has been in talks with other potential partners, including some foreign companies, to serve as a strategic partner. The airline has also had discussions with shareholders about diversifying its businesses into related sectors such as logistics, catering and cargo shipping. Mr Piyasvasti said after the rehabilitation, the government would remain the majority shareholder with a combined stake of 43%, including 33% held by the Finance Ministry, with the remaining 10% belonging to Krungthai Bank and other state-owned shareholders.

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Thai Airways to name new CEO as early as Jan 2023, acting head says. If the article mentions that THAI Airways International has defaulted recently, respond with 'AFTER'. If the article mentions that THAI Airways International will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. THAI Airways International is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. THAI Airways International is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. THAI Airways International has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of THAI Airways International. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

THAI Airways International expects to name a new permanent CEO as early as January 2023 as it proceeds with a pandemic-driven restructuring plan, the airline's acting chief executive said on Friday (Nov 11). The new chief executive will take over as the airline undergoes a bankruptcy protected debt restructuring and has shed around half of its workforce and aircraft fleet. "There were nearly 50 applicants," acting CEO Suvadhana Sibunruang told Reuters on the sidelines of an industry gathering in Bangkok, saying a decision would be made early next year. The airline, which has had acting CEOs since 2020, opened applications for the top job in September. Candidates were required to be Thai nationals in line with government regulations. Interviews are expected to begin soon, with candidates from the public and private sectors both being assessed, Suvadhana said. Thai Airways began bankruptcy protected restructuring of debt worth 400 billion baht (S$15.4 billion) last year. The new CEO will have to work with the restructuring committee and oversee the airline's recovery. Thai state agencies could own about 30 per cent to 40 per cent of the airline after the restructuring, down from current levels of 67 per cent, Suvadhana said, depending how much debt-to-equity conversions they exercise. "(The government) will maintain a large shareholding, but not enough to for the airline to become a state-owned enterprise again," he said. Under Thai law, companies that have government ownership of over 50 per cent are subject to more rigid management and labour regulations than private companies. The airline on Friday reported a third-quarter loss of 4.79 billion baht, down from a 40 billion baht profit the prior year that included a large one-off gain from the restructuring plan. Thai Airway's load factor - a measure of how well an airline is filling available seats - was about 80 per cent thanks to a recovery in travel, said Suvadhana, a level that it should be able to maintain next year. REUTERS

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled THAI expects to name new chief in January. If the article mentions that Thai Airways International has defaulted recently, respond with 'AFTER'. If the article mentions that Thai Airways International will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Thai Airways International is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Thai Airways International is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Thai Airways International has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Thai Airways International. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

Thai Airways International expects to name a new permanent CEO as early as January as it proceeds with its restructuring plan, acting CEO Suvadhana Sibunruang said on Friday. The new chief executive will take over as the national carrier continues with a major business reorganisation, which to far has has shed around half of its workforce and aircraft fleet. 'There were nearly 50 applicants,' Mr Suvadhana told Reuters on the sidelines of the Association of Asia Pacific Airlines (AAPA) conference in Bangkok, saying a decision would be made early next year. THAI, which has had acting CEOs since 2020, opened applications for the top job in September. Candidates are required to be Thai nationals in line with government regulations. Interviews are expected to begin soon, with candidates from the public and private sectors both being assessed, Mr Suvadhana said. The airline began restructuring debt worth 400 billion baht last year. The Central Bankruptcy Court on Oct 20 approved a revised business reorganisation plan, setting in motion a complete financial restructuring process. The new CEO will have to work with the restructuring committee and oversee the airline's recovery. State entities could end up owning about 30% to 40% of the airline after the restructuring, down from current total of 67%, Mr Suvadhana said, depending on the outcome of debt-to-equity conversions. '(The government) will maintain a large shareholding, but not enough to for the airline to become a state-owned enterprise again,' he said. The Finance Ministry is expecting to inject 10 billion baht into THAI to keep its shareholding from dipping below 40%. Under Thai law, companies that have government ownership of over 50% are subject to more rigid management and labour regulations than private companies. The Finance Ministry plans to inject 10 billion baht into THAI to keep its shareholding from dipping below 40%. The debt-ridden flag carrier has been making a better-than-expected recovery from the most financially trying period in its history. Its balance sheet has improved markedly since the removal of Covid-19 border restrictions, pushing up passenger and cargo traffic in recent months. THAI's load factor ' a measure of how well an airline is filling available seats ' was now about 80% thanks to a recovery in travel, said Mr Suvadhana, a level that it should be able to maintain next year. However, it continues to lose money although losses are expected to narrow. On Friday it reported a third-quarter net loss of 4.79 billion baht, compared with a net profit of 40 billion in the same period last year,?? which included a large one-off gain from the restructuring plan. According to the financial statement released to the Stock Exchange of Thailand, total revenue in the third quarter was 32.7 billion baht, compared with 4.7 billion (excluding the gain from debt restructuring) a year earlier. For the nine months to Sept 30, the net loss was 11.2 billion baht, compared with a restructuring-inflated profit of 51.1 billion the year before. It is hoped that once the airline has carried out the revised restructuring plan and returns to the black while managing to service its debts, THAI shares can be relisted on the SET, probably at the end of 2024.

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Future's bright as THAI rebounds. If the article mentions that Thai Airways International has defaulted recently, respond with 'AFTER'. If the article mentions that Thai Airways International will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Thai Airways International is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Thai Airways International is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Thai Airways International has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Thai Airways International. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

The aviation business was plunged into an unimaginable depth of despair during the more than two years of the Covid-19 pandemic, which has also set a new rule for the industry: shape up or ship out. Among the noted casualties has been the national flag carrier, Thai Airways International (THAI). In reality, the airline was in a precarious position before Covid-19 came along. The pandemic pushed the carrier, that had been on the verge, into bankruptcy. The Central Bankruptcy Court approved a recovery plan in September 2020 after the coronavirus pandemic grounded most of its fleet as borders gradually shut, grinding air travel to a halt. THAI's total liabilities stood at 338.9 billion baht against total assets of 298.9 billion baht as of Sept 30 that year. RELATED The airline fought for its life by adopting drastic internal restructuring and implementing "survival" measures including foregoing half of its aircraft fleet. By biting the bullet, it managed to stabilise its debt situation and its losses narrowed as a result. THAI seems to be looking up based on this year's numbers. Here is the chronology of how the situation unfolded for the flag carrier. In late February, THAI posted a 55.11 billion baht net profit for the previous year on 81.52 billion baht in revenue from one-time transactions, mainly asset sales, and a 19.70 billion baht operating loss. The operating loss was down 44% from the previous year but revenue from operations fell by 51% from 2020 to 23.75 billion baht. Income from passengers and cargo decreased by 59.9% to 24.60 billion baht. Operating expenses were at 43.45 billion baht, down by 48.2%. Apart from asset sales, the 81.52 billion baht in revenue from one-time transactions included income from debt restructuring, the sale of investments and restructuring and downsizing. As of Dec 31, the airline and its subsidiaries had assets of 161.22 billion baht, down 23% from a year earlier. Its accumulated debt was 232.47 billion baht, down by 31.2%. Worldwide, pressure on airline profitability diminished in the last quarter of last year with the improvement expected to continue this year, according to a business confidence survey of airlines' chief financial officers and heads of cargo, conducted by the International Air Transport Association. THAI took in three Boeing 777-300ERs in April after a substantial slashing of its fleet, suggesting a restored demand in air travel in light of relaxed travel restrictions. The planes will boost the airline's capacity to serve increasing demand from various markets across the globe, which are starting to pick up thanks to the easing of travel restrictions in most markets, including Thailand. The aircraft are equipped with a state-of-the-art inflight entertainment system, with eight seats in first class, 40 in business and 255 in economy. The jets will initially be deployed on the Bangkok-London route, though they would ultimately serve other lucrative long-haul routes, according to THAI. For the time being, the cost will be calculated based on the number of hours the aircraft are used. In the long run, THAI will pay the lessor a monthly rate for the additional planes that will be further negotiated to meet the company's ongoing financial rehabilitation process. As of April, the financially strapped flag carrier had sold or was in the process of selling 45 jets, leaving it with just 58 aircraft, excluding the three leased 777-300ERs. The flag carrier was banking on pulling out of bankruptcy protection and resuming trading of its shares earlier than planned, given an improved bottom line, the airline announced in June. The announcement came as the airline kept on cutting back on expenses. Its revenue was set to expand as the pandemic had subsided by the middle of 2022 and travel restrictions were lifted. The measures launched to streamline its operations and its improving financial performance are expected to enable the airline to emerge from financial rehabilitation and resume its stock trading sooner than was originally thought possible. The Stock Exchange of Thailand (SET) suspended the trading of THAI shares in May 18 last year due to the risk of it de-listing as a result of negative equity and signs of non-compliance. The company has until 2025 to resolve the issues that forced it to be suspended from the SET. However, the carrier said it was determined to get things back on track much sooner. The recovery of global travel narrowed THAI's losses to 3.1 billion baht in the first quarter of 2022, down from 6.9 billion baht in the corresponding period the year before. THAI was also working on mobilising a fresh fund under the restructuring programme while selling its assets overseas worth around 2 billion baht as it shifts its focus to online ticket sales. It was reported on July 1 that the airline had a new debt rehabilitation plan following a better-than-expected recovery from its financial crisis. The amended rehabilitation plan was submitted to the Central Bankruptcy Court. In the previous plan, THAI expected to face a cash deficit of 50 billion baht and therefore planned to borrow 25 billion baht from state-owned lenders and the rest from private financial institutions. However, since the airline realised it would be difficult to obtain the full loan amounts required, it first tried to find more cash by selling a number of assets and old aircraft, which brought in more than 9 billion baht, he said. The airline has also gained more income than expected after resuming international flights after the Covid-19 situation improved. At the time, the average number of THAI passengers stood at 13,000 a day, up from 1,000 during the first 10 months of last year, and with flights between 80% and 90% full. In the old rehabilitation plan, the airline had expected to have 5 billion baht in cash by the end of June, but in fact, it had up to 14 billion baht on hand then. The apparent signs of recovery prompted an amended rehabilitation plan as the airline felt it no longer needed to borrow as much as it initially thought. Under the new plan, THAI would borrow 12.5 billion baht over six years and another 12.5 billion baht in the shorter term. The airline's creditors accepted an amended business reorganisation plan (BRP) submitted to them by the plan administrator, the airline announced in September. The creditors, holding 78.5% of the total debt voted to accept the BRP amendment. A resolution from the meeting convened to conduct the vote was reached under the Bankruptcy Act. THAI hailed the plan approval as a significant step in laying the foundation for its growth and profit-making capability. In the following month, the Central Bankruptcy Court gave the green light to THAI's revised plan, setting in motion its full financial restructuring process. The creditors who earlier gave their nod to the plan included the Finance Ministry which viewed it as a critical instrument for pulling the airline out of financial rehabilitation and returning it to the stock market faster. THAI was on course to hiring a financial adviser to prepare the processes of debt-to-equity conversion and recapitalisation worth 25 billion baht to be completed over the next two years. The target is half of what was set prior to the business plan revision. In October, the airline had cash flow of around 20 billion baht. It added three more Boeing 777-300ER aircraft to its fleet. THAI deployed or was in the process of re-deploying aircraft as it continually restored flight frequency to several routes. The airline's cabin factor had climbed to a solid 80%. In late October, the airline's letter of interest signed four months earlier for two Airbus A350-900 aircraft won approval by both the Ministry of Transport and the Civil Aviation Authority of Thailand. THAI was moving to get the aircraft lease agreement signed as soon as possible. By the middle of November, 60% of the aircraft in THAI's pre-pandemic fleet had resumed service. The company was exploring opportunities in the Asia-Pacific as the number of passengers was forecast to grow 4.5% and reach 2.53 billion by 2040, surpassing all other regions. THAI in November had 44 aircraft in service, compared with 83 before the pandemic. THAI and its subsidiary, Thai Smile, together operate 713 flights per week serving 68 destinations, including 402 flights per week within Asia, 63 flights per week in Europe, 21 flights per week serving Australia as well as 227 domestic flights per week, which are operated by Thai Smile. Passengers in Asia are rising, especially on Japanese and Indian routes, as flight capacity has almost reached the level recorded in pre-pandemic 2019. Meanwhile, 80% of European passengers have returned with healthy demand during the months of December and January when high airfares do not matter much. The termination of China's circuit-breaker mechanism -- in which incoming flights are to be suspended if they are found to carry a certain number of passengers who tested positive for Covid upon landing -- is a boon for THAI's flights to China. THAI said in November it was also looking to resume flights to major cities in mainland China, such as Beijing, Shanghai and Guangzhou. The company expected to add five more wide-body aircraft and four narrow-body aircraft to its fleet this year to meet its revenue projection. High airfares are expected to persist due to an increase in fuel prices amid geopolitical tensions as this accounts for 40% of the airline's operational costs. Flight capacity is expected to gradually increase, the airline has said. In the first nine months of this year, THAI logged revenue of 73.1 billion baht with a 11.2-billion-baht loss, including a third quarter loss of 4.7 billion baht. THAI requires only half the money it initially estimated would be needed for recapitalisation, given its positive performance, A high-level meeting was convened to follow up on THAI's financial rehab. It was attended on Nov 22 by airline executives, those in charge of the carrier's rehabilitation plan, senior Finance Ministry officials, Fiscal Policy Office director-general Pornchai Thiraveja and State Enterprise Policy Office director-general, Pantip Sripimol. The meeting was chaired by Deputy Prime Minister Wissanu Krea-ngam. The meeting was told THAI's liquidity had returned after the reopening of borders and revitalised air travel demand. For this reason, the airline will need to borrow less than planned to finance its operations and recapitalise. The airline has cut its borrowing target of 50 billion baht by half. Despite this, the airline still needs loans to maintain its liquidity and drive business growth. In late November, Chai Eamsiri, the national carrier's chief financial officer, was chosen to be its new CEO. He starts his new job on Feb 1.

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Airlines juggle demand as fares skyrocket. If the article mentions that Thai Airways International has defaulted recently, respond with 'AFTER'. If the article mentions that Thai Airways International will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Thai Airways International is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Thai Airways International is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Thai Airways International has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Thai Airways International. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

Global aviation has experienced a promising start to the year as travel restrictions have been lifted, allowing people to fly with fewer barriers. Even countries with strict Covid-19 policies, such as China, lifted their restrictions earlier than expected. The World Tourism Organization predicts Europe and the Middle East will reach pre-pandemic international tourist levels this year, forecasting an 80-95% overall recovery, while the Pacific Asia Travel Association projects a growth rate of at least 71%. Yet the aviation industry faces a manpower shortage as demand for air travel surges, while seat capacity remains limited. This has resulted in a significant increase in airfares as supply struggles to keep up with pent-up demand from eager travellers. WHAT ARE THE MAIN REASONS FOR THE COSTLIER TICKETS? In 2020, Covid-19 travel restrictions caused massive damage to the aviation industry, resulting in airline bankruptcies and widespread layoffs. An estimated two-thirds of passenger airplanes remained grounded at airports and desert yards during the pandemic's first year. As of June 2022, the global airline fleet totalled 28,674 planes, with 5,161 still grounded, mainly in Asia, according to airline data provider ch-aviation. China's closure, while other countries in the region reopened in the second half of last year, contributed to Asia's grounded fleet of 2,338 jets, representing 23% of the region's total fleet of 10,014 recorded in June 2022. However, with the lifting of international travel mandates, the aviation industry's recovery pace began to accelerate in the second half of 2022, helping to revive outbound travel demand. According to the International Air Transport Association (IATA), global air passenger traffic in 2022 recovered to 68.5% of the 2019 level, up from 41.7% in 2021. Philip Goh, regional vice-president for Asia-Pacific at IATA, said pent-up demand would keep growing rapidly, which naturally pushes up prices. He said the spike in passenger airfares resembles the high price of cargo services during the three-year pandemic, when limited supply could not match demand. Mr Goh said higher jet fuel prices also contributed to soaring ticket prices. The impact from energy costs was prevalent in 2022 when the fuel price skyrocketed by almost 80% to US$138.80 per barrel from $77.80 per barrel in 2021. WHICH REGIONS ARE RESUMING AT A SLOWER PACE? Global passenger capacity resumed to 77.9% of 2019 levels in December 2022, with Asia-Pacific trailing at 59.8% because of recently relaxed travel restrictions. As travel demand outpaced supply, airlines struggled to bring back grounded jets. Some airlines even returned leased aircraft to cut costs during the pandemic, forcing them to order new ones as the market recovers. To maintain their finances, these airlines are operating with a limited number of aircraft. "Seat capacity on many routes, notably in Asia-Pacific, has yet to be restored to normal as it was affected by various travel restrictions, labour shortages and the time needed to bring parked aircraft back into service," said Mr Goh. According to the International Air Transport Association, higher jet fuel prices has attributed to the higher ticket prices. (Photo: Somchai Poomlard) HOW LONG WILL HIGHER TICKET PRICES LAST? In general, prices will depend on whether seat supply can increase to match the strong passenger demand, he said. Even if seats can be increased, Mr Goh said unpredictable factors remain such as high fuel prices and how effectively airlines can cope with manpower shortages, service restoration, retraining of staff and refreshing operating and safety procedures. Local aviation industry executives believe ticket prices will continue to be expensive, which is in line with IATA's forecast that industry passenger traffic will not return to the 2019 level until next year. Patee Sarasin, a former Nok Air chief executive, said high airfares are expected to persist for 2-3 years as some airlines suffered losses from the pandemic and want to make up for that period. For example, airfares from Thailand to major cities in Europe are projected to exceed 40,000 baht, and airlines are unlikely to lower prices anytime soon, especially for popular routes such as Japan, he said. For the Songkran holiday next month, direct flights from Bangkok to Fukuoka start at 26,000 baht, while flights to Tokyo increased to a minimum rate of 35,000 baht, according to data from online travel agents. The high prices primarily affect international routes and not domestic flights, where capacity has rapidly resumed and average prices are predicted to return to competitive levels soon. Santisuk Klongchaiya, chief executive of Thai AirAsia, said as the airline adds more international flights this year, its airfares increased by around 20%. The average airfare for the newest routes in China that reopened this quarter increased by 50% compared with pre-pandemic rates, he said. Mr Santisuk said there is little chance of airlines starting a price war, as happened during the pre-pandemic years. HOW HAVE LOCAL AIRLINES ADJUSTED THEIR CAPACITY? The aviation industry in Thailand suffered a heavy toll from the downturn the past few years, leaving airlines with no choice but to scale back their fleets. As a result, there is now a shortage of supply as passengers begin to return this year. Low-cost carrier NokScoot Airlines exited the market in June 2020, while loss-ridden Thai Airways International (THAI) and Nok Air filed for bankruptcy protection with the Central Bankruptcy Court in the same year, followed by Thai AirAsia X, the long-haul service under AirAsia group, in 2022. As of Dec 31, 2022, THAI and its affiliate slashed their fleet size from 103 in the pre-pandemic period to 64, of which 41 jets were used by THAI and the rest by Thai Smile Airways. This year the flag carrier plans to merge Thai Smile Airways to streamline operating costs and integrate business plans. THAI also plans to add nine jets to the fleet this year to cater to robust passenger demand. Thai AirAsia X downsized its fleet size from 11 aircraft before the pandemic to six Airbus A330s. It now faces a shortfall as there is overwhelming demand for popular destinations in Japan this year. Thai AirAsia (TAA), the biggest low-cost airline in the country, maintained most of its enormous fleet, with 54 airplanes still in operation in 2022, compared with 63 in 2019. However, the availability of jets is likely of little use for long-haul flights as all are narrow-body planes for TAA destinations in Southeast Asia, which face less steep price hikes. The longest-distance route for TAA is to Fukuoka, Japan, which has a persistent high price, said the airline. TAA is gauging Chinese demand this year and plans to increase its fleet to 58 jets by the end of the year if this market proves feasible, said Mr Santisuk. Thai Vietjet expanded its fleet from 13 jets in 2019 to 16 in 2020 and is now operating with 18. The carrier expects to have 20 Airbus A320 and A321 planes by the end of this year. Nok Air continued to cut its fleet to 22 jets in the first half of 2022, while Thai Lion Air currently has 11 aircraft, down from 30 jets prior to the pandemic. Bangkok Airways slashed its 40-aircraft fleet in 2019 to 35 in 2022, and has a plan to replace old aircraft with new ones, targeting 26-28 jets this year.

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Tisco asks for help to solve debt issue. If the article mentions that Tisco has defaulted recently, respond with 'AFTER'. If the article mentions that Tisco will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Tisco is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Tisco is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Tisco has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Tisco. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

H?€ N???I ' Th??i Nguy??n Iron and Steel Corporation (Tisco) has proposed its parent company ' the Vietnam Steel Corporation (VNSteel), alongside the Ministry of Industry, Trade and Finance, and other relevant agencies assist the firm to extend loan dues and restructure debts to resolve financial issues, dantri.com.vn reported. At its annual shareholder meeting on June 12 Tisco reported that its total combined net revenue rose 10.9 per cent year on year to VN??19.8 trillion (US$880 million) in 2017 and its pre-tax profit was VN??898 billion, nearly tripling that of 2016. However, the company has encountered difficulties in high production costs, which has reduced its competitiveness in the market, while it does not have enough capital to either continue production or expand its factory. During the second-stage expansion of Tisco's operations, which took place from 2009-10, VNSteel guaranteed Tisco a VN??1.86 trillion loan from the Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank). Tisco is yet to pay back the debt. Tisco reported its charter capital was VN??1.84 trillion. The company had spent VN??1.5 trillion on the expansion project and it had lent VN??531 billion ($23.6 million) to other businesses, but the investments were not efficient. The company retrieved a part of its outward loans, reducing its receivables to around VN??450 billion. According to the firm's management board, the biggest problem Tisco has to face is how to resolve the loan borrowed from Vietinbank. To resolve the current financial issues, the management board has offered to mortgage two iron and coal mines to any financial institution or business that will buy the VN??1.86 trillion debt from Vietinbank so that VNSteel is no longer involved in Tisco's loan. Another solution is for the Government to sell its ownership in Tisco to the private sector and reduce its stake to below a specific ratio that allows private firms to take a decisive role in Tisco's management board. However, the divestment plan remains unknown and there has been no business or financial institution that is interested in buying the Government's stake in Tisco. The two plans have put Tisco in a dilemma over whether it should transfer the State capital to the State Capital and Investment Corporation (SCIC) or remain under the management of the industry and trade ministry and continue resolving existing issues. The Ministry of Industry and Trade has been asked to submit a divestment plan of Tisco to the Prime Minister for consideration as soon as possible. ' VNS

NO

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Little progress made on salvage of 'infamous twelve' failed mega projects. If the article mentions that TISCO has defaulted recently, respond with 'AFTER'. If the article mentions that TISCO will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. TISCO is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. TISCO is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. TISCO has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of TISCO. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

H?€ N???I ' Little progress has been made to salvage the 'infamous twelve', a series of failed mega economic projects under the management of the Ministry of Industry and Trade, despite numerous attempts by various government agencies in the last four years to revive the projects. The twelve, which have cost the State billions of dollars, have always been high on the priority list of the Government's effort to restructure State-owned corporations during the 2016-20 period. According to the latest report from the Government, only three out of the twelve: DAP-1 H???i Ph??ng (a fertiliser factory) and two bioenergy plants in the provinces of Ph?? Th??? and B??nh Ph?????c, have seen improvement in their performance. Several of the twelve have begun operating though after experiencing delay after delay due to a mirage of technical and financial problems. Several have been put on hold completely with no reboot schedule insight, and others did not even finish their construction phase. According to the ministry, at least five of the twelve are currently being held back in legal limbo after multiple negotiation attempts failed to resolve issues with their EPC (Engineering, Procurement and Construction) contracts. No amount of the State's investment could be retrieved before said issues were addressed. A restructuring effort at Th??i Nguy??n Steel Corporation (TISCO), Vi???t-Trung Mining and Metallurgy Company (VTM) and ????nh V?? Polyester Plant has been put on hold for now due to a lack of capital. By the end of the first quarter of 2021, TISCO's total liability is due to reach VN??7.73 trillion or nearly 80 per cent of its total assets, all on top of nearly VN??1 billion it has to pay every day in interest alone. Meanwhile, VTM, after a period of profit-making, has lapsed into the red. The company's board blamed the pandemic and the tighter import/export of minerals as the main factors. For a majority of the twelve, efforts to salvage them have slowed to a crawl as governmental agencies showed they possessed little political will to make breakthroughs. Economists have long pointed out the underlying cause, which is the agencies' save-the-State-budget-at-all-costs attitude. Attempts to gloss over or trivialise losses to the State budget in official accounting have been made, a far departure from the grim reality of the projects. For some of the twelve such as the Ph????ng Nam Pulp Mill, there doesn't seem to be a way out. The mill, which has cost over VN??3 trillion by the end of 2014 according to a report by the Nh??n D??n (People) newspaper, has not even been put to use, except for a short pilot run in 2012 during which it had experienced a mirage of technical issues and had to be shut down. Since then the mill has been put on sale at least four times without success. It has been left unused for so long the Long An provincial government at one time submitted a proposal to turn it into a residential project. A government report showed by the end of last year, the twelve's total liability has reached over VN??63.3 trillion or US$ 2.76 billion, with estimated capital loss in the range of VN??7.2 trillion. ' VNS

NO

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled [DEBRIEFING] The stunning collapse of Doosan Heavy Industries. If the article mentions that Worldwide has defaulted recently, respond with 'AFTER'. If the article mentions that Worldwide will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Worldwide is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Worldwide is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Worldwide has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Worldwide. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

?????? ???????????? In Debriefings, the Korea JoongAng Daily discusses a topical issue in-depth in a Q. and A. format. In this Debriefing, we look at the history of Doosan Heavy Industries & Construction, and the path the company took to reach today's risk of insolvency. Doosan Heavy Industries & Construction, as we know, is in deep financial trouble. The company, which has staggered through years of growing losses, has finally reached out to the government for help. Its ballooning debt level and lack of new contracts have taken a toll on the Doosan Group, the 15th largest conglomerate in Korea, with even distant affiliates taking hits to their credit ratings. For the past several years, good news has been hard to come by at Doosan Heavy Industries. Domestic energy policies have turned away from coal and nuclear power ' historically, the construction firm's bread and butter. Similarly, the international company has suffered from a global shift toward renewable energy sources and pivoted away from traditional ones. Whether and how the government should step in to help the financially distraught plant builder has become an increasingly political debate. And creditors are offering up new suggestions on how to carve up the company's holdings almost every day, potentially complicating the prospects of life-saving surgery for Doosan Group. In this debriefing, we aim to strip out the politics and nail down how the company got to where it is today, and what can reasonably be expected moving forward. 1. So a big company is struggling after years of mounting losses. Why should we care? Changwon, South Gyeongsang-based Doosan Heavy Industries has a workforce of about 6,700 employees. It is Korea's sole supplier of nuclear reactors and the exclusive construction company for nuclear power plants in the country. That puts the company in charge of 133,505 gigawatt-hours, or of 23.4 percent of electricity generated for Korea in 2018. If Doosan Heavy Industries fails, nearly a quarter of the electricity on Korea's grid would be up in the air, with no other domestic companies qualified to step into Doosan Heavy's role. The company is also a major builder of coal-fired power plants, from engineering and procurement to construction, both for Korea and a number of other countries. Doosan Heavy Industries built units 7 and 8 at the Hadong power plant, Korea's first coal-fired plant. Even though Korea has been focusing on increasing its proportion of renewable energy sources, coal still accounted for 41.9 percent of all power production in the country as of 2018. As with nuclear, if Doosan Heavy Industries fails, Korea could be left without a qualified domestic company to maintain that 238,967 gigawatt-hours of energy. ?????? ???????????? 2. Just how bad is the outlook for Doosan Heavy Industries? Korea's biggest plant builder stands at the brink of insolvency. The company's debt ratio is in excess of 300 percent, and its share price has nosedived by more than 97.7 percent from its November 2017 peak of 165,238 won ($136.50) to 3,730 won as of Wednesday. Since February, the world's leading desalination plant builder has been offering early retirement and paid leave to employees. It has also cried out for help from two state-run creditors, both of which are demanding massive restructuring efforts for the sake of profitability. Doosan Group relied on Doosan Heavy Industries for about 20 percent of the conglomerate's revenue and 7 percent of its operating profit in 2019. Doosan Heavy Industries has been in an accelerating financial free-fall for the past seven years. The aggregate value of its assets at Doosan Group has lost almost 14 percent, from its peak of 33.07 trillion won in 2015 to 28.46 trillion won last year, according to data from the Fair Trade Commission. Doosan Heavy Industries is 32.3 percent owned by Doosan Corporation, which is the Doosan Group's holding company. The plant builder owns 36.27 percent of machinery manufacturing affiliate Doosan Infracore, which controls 51.05 percent of Doosan Bobcat, a U.S.-based farm equipment manufacturer. The sub-holding company also owns a 100 percent stake in Doosan Engineering & Construction, which has been posting its own immense losses in recent years. The dimming outlook for Doosan Heavy Industries has weighed down not only its own credit rating, but also those of other Doosan Group affiliates. The Korea Investors Service (KIS) cut Doosan Heavy's credit ratings from BBB+ to BBB last May. The ratings service last month adjusted its credit rating outlook for Doosan Heavy Industries to 'negative,' while maintaining its rating at BBB. In January, the credit rating agency also issued a BBB+ rating for Doosan Corporation, which owns 34.4 percent of Doosan Heavy, citing the weakened credit rating of Doosan Heavy and fiscal pressure for aid to Doosan Heavy's subsidiaries. The corporation had previously boasted an A- rating. The KIS in January also lowered its forecast for Doosan Infracore from positive to stable, despite maintaining its rating at BBB. 3. How did this happen? Is the current administration to blame? That's what many have argued ever since President Moon Jae-in came to power in 2017. His government wants to boost renewable energy's share of overall energy production to 20 percent by 2030, and to between 30 and 35 percent by 2040. According to government data, renewable energy accounted for 6.2 percent of all energy produced in Korea in 2018. That is up 0.6 percentage points from when he took office. Most significantly for Doosan Heavy, Moon has advocated a phasing-out of nuclear power in Korea. Although Doosan Heavy Industries has stopped short of directly blaming the Moon administration's policy changes for its problems, there's no denying that the company has lost significant revenue from a number of nuclear power plant projects coming to a halt. The Moon administration has scrapped earlier plans for six new power plant projects in the country since coming to power. Doosan Heavy said it lost around 10 trillion won in possible contracts domestically. From the cancellation of three nuclear power plant projects, the builder claims to have lost potential contracts worth between 7 and 8 trillion won, and another 2 to 3 trillion won after plans for three coal plants were shifted to liquefied natural gas. Opposition party politicians have seized on those numbers to fiercely attack the Moon administration, accusing it of single-handedly bringing down Doosan Heavy Industries and endangering Korea's electricity supply. 4. But is it really the government's fault? Couldn't Doosan Heavy Industries have focused on more overseas projects? Doosan Heavy Industries had been losing money well before Moon came to power, as its main business, building and maintaining coal-fired power plants, was losing popularity across the world. Its nuclear power plant division only accounts for around 15 percent of the company's entire business, while coal plants make up around 70 percent. Operating profits for Doosan Heavy Industries have steadily fallen, most recently reaching 87.7 billion won from a record-high 477.4 billion won in 2012. Meanwhile the company has reported net losses every year since 2014, with the exception of a 15.8 billion won net profit in 2017. Much of the decline in profits can be blamed on a lack of foreign contract volume, which has historically accounted for around 70 percent of Doosan Heavy Industries' total sales. Since many countries have for decades begun shifting toward renewable energy sources, the demand for new coal plants has declined over the last decade. In recent years, the new contract volume for coal power plant construction fell from 76 gigawatts in 2013 to 23 gigawatts in 2018, according to the International Energy Agency. Experts have also noted that low oil prices have reduced the demand for new power plant contracts in the Middle East, which accounts for much of the global market demand. The Korean government has pushed back against critics' arguments that Doosan Heavy's failings owe largely to Moon's nuclear phase-out policies. The Ministry of Trade, Industry and Energy argued in a statement last month that funding from the state-owned Korea Hydro & Nuclear Power to Doosan Heavy Industries for supplying core machinery parts rose from 587.7 billion won in 2017 to 892.2 billion won in 2019. 5. So is it only Doosan Heavy Industries that has been losing money? What have its competitors done to survive? Everyone in the thermal power plant business has taken a hit from the passage of international climate pacts aiming to shrink the greenhouse gas footprint of energy production. Worldwide, new electricity sources have skewed increasingly toward renewable energy sources like wind and solar power. The global plant-building market as a whole has struggled for the past several years, with companies announcing layoffs and restructuring plans. In 2017, Munich-based conglomerate Siemens announced it will cut around 6,900 jobs, mainly in its power and gas division, to respond to the rapid growth of renewables. A year later, General Electric cut some 24,000 employees at its troubled power plant business. A Doosan Heavy spokesperson said that the company lost some of its credibility in the global market and suffered in exports as it continued to lose money and because of unfavorable domestic policies. The spokesperson also said the company has been working non-stop to develop new growth areas, including components for power plants that run on liquefied natural gas. 6. Why is this becoming an issue now? Weren't there bad forecasts for the company before this year? Doosan Heavy Industries was actually warned multiple times in the past by multiple entities. Most recently, the Cleveland-based Institute for Energy Economics and Financial Analysis (Ieefa) issued a warning on the sustainability of Doosan Heavy Industries in a report in September 2019, saying the power equipment company has been accumulating too many losses from its heavy focus on coal and nuclear projects, for which the demand has been in 'terminal decline.' 'The company's financial health has remained inextricably linked to a high-risk pipeline of domestic and developing market fossil fuel projects,' said Ieefa Asia Energy Finance Studies director Melissa Brown. 'For Doosan Heavy, problems in the marketplace and pressure on the balance sheet are intertwined.' 'Doosan Heavy appears to have misread the direction of power markets over the past three years, and like many national champions in the power sector, the company has lost much of its domestic and global growth potential,' the energy institute's report stated. Likewise, the company's credit ratings have been falling, and if nothing else, that should have offered a clear warning sign to the company, the government and investors. 7. What are the creditors suggesting? As the Korea Development Bank and the Export-Import Bank of Korea have agreed to provide a total of 1 trillion won in loans to Doosan Heavy Industries, the two state-run creditors essentially want the company to restructure and separate profit-making affiliates from under its arms. They remain concerned that the financial risks from Doosan Heavy Industries' plant-building business could extend even to its profitable affiliates.Under the loan agreement, Doosan Group's shares in Doosan Solus, an electronics parts supplier, Doosan Fuel Cell and Doosan Mecatec, a chemical process equipment manufacturer, would be held as collateral under the plan. Doosan Tower, which is located in Jung District in central Seoul, would also be put up as collateral. One idea that has been widely reported across media outlets as a realistic solution was splitting off Doosan Heavy Industries' ownership of Doosan Infracore, which partly owns Doosan Bobcat, into a separate firm and letting Doosan Corporation, the holding company of Doosan Group, acquire the stake later. The rest of Doosan Heavy Industries would be left with its main business and a 100 percent stake in Doosan Engineering & Construction, which has been posting immense losses in recent years. Some analysts have suggested the possibility of Doosan Engineering & Construction being out on the market for sale, but specific details have yet to be finalized. 8. Is Doosan Heavy Industries able to keep moving forward? Doosan Heavy isn't yet waving the white flag and waiting for creditors to come to the rescue. The company last month asked its employees to go on leave with reduced pay and offered voluntary retirement to employees aged 45 and older. The plan applied to a total of 2,600 employees, or 39 percent of the total workforce. Doosan Heavy Industries was also increasing its research-and-development investments in other business areas. In September, Doosan Heavy Industries completed a test model of its first ever large-sized gas turbine, developed entirely in-house. It was the outcome of a government-sponsored project that kicked off in 2013. If successfully tested in the coming months, the gas turbine would make Korea the fifth country in the world to develop its own gas turbine, the company said. The development would allow it to target the global market for natural gas energy production. The company hopes to reach more than 3 trillion won in sales of gas turbines annually, and occupy 7 percent of the global gas turbine market by 2026. According to IHS Cambridge Energy Research Associates, the global gas power production market is expected to grow from 1,757 gigawatts in 2018 to 1,976 gigawatts in 2023 and reach 2,189 gigawatts by 2028. New York-based consulting firm McKinsey & Company believes liquefied natural gas demand will grow at 3.6 percent per year from 2018 to 2035. 9. Would policy changes help Doosan Heavy Industries? At this point, any policy changes re-emphasizing nuclear or coal-fired power plant production would help the company avoid losses from mounting even further, but that's highly unlikely. Korea pledged in 2009 to reduce its greenhouse gas emissions by 30 percent, from the previous year's emission levels by 2020. Under the Paris Agreement in 2015, Korea agreed to cut those emissions by 37 percent by 2030. Although those pacts were not legally binding, it is unlikely that Korea would reverse its current policies to re-embrace coal power. But things could change under a new administration. Moon's government is the first to embark on policies aimed at curtailing traditional energy sources in favor of renewables. Just last week, the United Future Party Chairman Hwang Kyo-ahn, the main leader of the opposition party, last week accused the Moon administration of ruining the Korean economy, and vowed to increase support for nuclear power production. 'If you go to Changwon, South Gyeongsang, right now, Doosan Heavy Industries and some 300 partnering companies have shut their doors because they are out of work,' Hwang said. While many are divided over the causes for Doosan Heavy Industries' stunning collapse, it may be too late for Doosan Heavy Industries to restore its prior standing. Warnings were ignored, and alarms were muted for months. At this point, it will take more than just a policy shift and a couple years of positive growth for the company to begin posting net profits again. The spin-off proposals of Doosan Heavy Industries offer a starting point, but how the conglomerate is ultimately divvied up is worth paying attention to, especially given the company's deep ties to Korea's energy production. BY KO JUN-TAE [ko.juntae@joongang.co.kr]

NO

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Like a son but cheaper: harried South Koreans pamper pets instead of having kids. If the article mentions that Picnic has defaulted recently, respond with 'AFTER'. If the article mentions that Picnic will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Picnic is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Picnic is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Picnic has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Picnic. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

SEOUL (Reuters) - Kang Sung-il buys Sancho, his Pomeranian, a toy every business trip and this Lunar New Year holiday will dress him up in a new $50 suit to visit 'grandma', Kang's mother. Kang and his wife say children are too expensive and bring too much pressure. Instead they have opted to shower Sancho with love and gifts. They are not alone. South Korea's pet industry is booming, fueled by the same factors that have made the country's birth rate, at 1.05 births per woman, the lowest in the world: the high cost of education and housing as well as extremely long working days. 'Social pressures in South Korea are such that parents are required to provide resources for decades from private schooling to tutoring to art classes,' said Kang, a 39-year old manager of a pet funeral home. He says he found it hard to imagine being able to afford all that but is happy to spend about 100,000 won ($90) a month on Sancho. On top of education expenses, an average South Korean household must budget roughly 12.8 years of income to buy a mid-range home, compared to 8.8 years in 2014, data from KB Kookmin Bank shows. Adding to their stress, South Koreans work the third most hours per year among OECD nations, lagging just Mexico and Costa Rica. 'The pet population is growing as more people choose not to have babies or even not to marry,' said Kim Soo-kyung, manager at Samjong KPMG Economic Research Institute. Pet-owning households have surged to 28 percent of all South Korean households in 2018, compared with 18 percent in 2012, government data shows. That in turn has spurred a flourishing pet care industry whose offerings include tailored pet diets and high-priced photo shoots. Pet-related startups are also in vogue with venture capitalists. The South Korean pet-related industry was worth 2.7 trillion won ($2.4 billion) last year, and that could more than double in size by 2027, according to the Korea Rural Economic Institute. Firms seeking to profit from the boom include Pet Pick, which produces tailored food for over 10,000 animals. It is one of four pet startups to receive investments from GS Home Shopping, an online retailer that is part of the GS Holdings Corp conglomerate. 'We only use high quality ingredients, such as salmon and cranberry so our products are more than twice as expensive as regular dry pet food,' Pet Pick co-founder Park Eun-byul said at the firm's Seoul factory. 'Many of our customers are millennials, who treat pets as their babies and are willing to pay more,' Park said. Leading venture capital fund, Korea Investment Partners, invested in two pet startups in 2018 - Bacon, which makes toys themed for holidays such as Christmas or Halloween, and Pet Friends, which promises to deliver pet products within one hour. The fund plans to invest in Picnic, which sells hand-made pet food, later this year. Established firms are also cashing in. Meritz Fire & Marine Insurance saw more than 6,000 customers sign up in three months with a revamped pet insurance product launched in October, compared with roughly 100 per year for its earlier insurance program. Sales of pet products at CJ ENM's TV and online shopping division rose three times last year, with a cactus-shaped water purifier for cats priced at over $100 doing particularly well. 'It's twice as expensive as an ordinary purifier but we sell dozens every day,' said Lee Da-woon, who procures pet products for the online mall. Pet funeral services are also increasingly popular and the home where Sancho's owner Kang works, now holds more than 10 services a day, compared with 3-5 when it opened two years ago. In Namyangju, just outside Seoul, Lee Jae-hwan goes for a walk every day carrying an urn with the ashes of his dog Kkotgae, continuing the routine they used to share. 'I've always introduced Kkotgae as my only son, the most loved one in the world,' 51-year-old Lee said in a tearful interview at home, next to a ceremonial table with photos, some food and burning incense. 'He never saw the ocean. I wish we had visited together.'

NO

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Bangkok Exchange's Chief To Lead Krung Thai Bank. If the article mentions that First Bangkok City Bank has defaulted recently, respond with 'AFTER'. If the article mentions that First Bangkok City Bank will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. First Bangkok City Bank is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. First Bangkok City Bank is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. First Bangkok City Bank has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of First Bangkok City Bank. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

BANGKOK, Thailand -- Authorities named the chief of the Bangkok stock exchange to head Thailand's largest commercial bank, Krung Thai Bank PCL. The appointment underscores Thailand's shortage of managers able to help the government solve the country's economic and financial problems. The finance ministry said Friday that Singh Tangtatsawas, president of the Stock Exchange of Thailand, will become president of the state-owned bank on July 15. That is just three years after the government hired him away from Siam Pulp & Paper PCL, a unit of Thai conglomerate Siam Cement PCL, and a year before his tenure at the stock exchange was due to finish. The government hasn't named a successor for Mr. Singh at the exchange. Krung Thai's previous president, Sirin Nimmanahaeminda, resigned Jan. 15 amid criticism that he was unable to solve the bank's problems with mounting bad loans -- they are among the highest in Thailand's banking sector -- and need for recapitalization. (Mr. Sirin's older brother is Finance Minister Tarrin Nimmanahaeminda. His resignation came one year after Mr. Tarrin returned to the leadership of the finance ministry, with a mandate to clean up the country's banking sector and fix the economic crisis.) The hunt for Krung Thai's new chief began even before Mr. Sirin's resignation took effect, but many banking-industry figures have privately acknowledged that the choices are limited. Last month, Ekamol Khiriwat, former head of the Securities and Exchange Commission, told reporters he had discussed the position with Mr. Tarrin. However, Mr. Ekamol expressed concerns about who else would be on the management team, saying he wouldn't have been given power to personally select them. Mr. Singh takes on a tough job. Because Krung Thai is majority-owned by the government, the bank's new leader must be able to resist political pressure, which has pushed the bank into its own crisis in the past. Between 1995 and 1997, for instance, the bank took a major role at the government's behest in propping up both the stock market and troubled financial institutions. It became the country's biggest bank last year when it took over the assets of two nationalized banks, First Bangkok City Bank PCL and Bangkok Bank of Commerce PCL. Speaking to reporters Friday, Mr. Tarrin insisted that Mr. Singh is the most acceptable choice for the job, despite his lack of experience at managing a financial institution. The finance minister didn't elaborate. Mr. Singh's priority will be to reduce the amount of bad loans at Krung Thai, which, by new accounting standards, stood at 58% of total loans at the end of the first quarter, said Mr. Tarrin. Eventually, Mr. Singh will also become Krung Thai Bank's chief executive officer, taking undisputed control of the bank, Mr. Tarrin added. His appointment had been expected, and Krung Thai's stock closed unchanged at 26.75 baht (72.4 U.S. cents) Friday. Mr. Singh, who earned a master's degree in banking and finance from the University of Pennsylvania's Wharton School, expressed his confidence in his ability to run the bank, just as he has run other organizations during his experience of nearly 20 years. "The management role in Krung Thai Bank is to increase the value of the organization to meet the expectations of shareholders," he said, adding, "We can achieve that by creating good corporate governance and good risk-asset management."

NO

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Krung Thai Bank's Shareholders Will Select New Board Members. If the article mentions that First Bangkok City Bank has defaulted recently, respond with 'AFTER'. If the article mentions that First Bangkok City Bank will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. First Bangkok City Bank is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. First Bangkok City Bank is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. First Bangkok City Bank has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of First Bangkok City Bank. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

BANGKOK, Thailand -- Shareholders of Krung Thai Bank PCL will meet on Friday to pick a new board of directors to replace the former board that was forced to resign last month. The shareholders will likely name a new board chairman among others, said a bank spokeswoman. The bank can appoint a maximum of 15 board members, including the chairman. But exactly how many new members will be appointed is uncertain. Krung Thai's major shareholder, the Financial Institutions Development Fund of the central bank, purged all but bank president Singh Tangtatswas from the board of directors on August 24, after former chairman Mechai Viravaidya said he wanted to step down. Mr. Mechai indicated he disagreed with Finance Minister Tarrin Nimmanahaeminda over the bank's future direction. Among those tipped to head the new board are Sivavong Changkasiri, the former permanent secretary of the Ministry of Industry; Staporn Kavitanon, secretary general of the government's Board of Investment; and Vichit Suraphongchai, chairman of nationalized Radanasin Bank PCL. Finance Minister Tarrin said government officials were pricing nonperforming loans to be transferred to a new asset management corporation of Krung Thai Bank that will be set up before the end of the year, according to the Nation, a local daily newspaper. Krung Thai Bank senior executives have said they prefer the bank to hold less than 50% of the asset management company, which will manage the nonperforming loans of both Krung Thai Bank and failed First Bangkok City Bank PCL. The remaining stake will be held by the FIDF. Krung Thai Bank had absorbed all assets of the failed bank under a government's comprehensive plan to restructure the country's financial system. As of end-August, Krung Thai Bank had restructured 92.74 billion baht ($2.35 million), or 14.71% of the total 630 billion baht nonperforming loans of both banks. Krung Thai Bank shares closed at 15.75 baht, down 1.6% from 16 baht per share.

NO

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Phoenix Pulp's Chief Considers Resigning. If the article mentions that Phoenix Pulp & Paper PCL has defaulted recently, respond with 'AFTER'. If the article mentions that Phoenix Pulp & Paper PCL will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Phoenix Pulp & Paper PCL is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Phoenix Pulp & Paper PCL is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Phoenix Pulp & Paper PCL has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Phoenix Pulp & Paper PCL. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

BANGKOK, Thailand -- The chief executive of embattled Phoenix Pulp & Paper PCL, George Davison, said he is considering resigning. Mr. Davison spoke a week after an annual shareholders' meeting at which a business coalition led by Kirit Shah, a commodity trader and the head of shipping group Globex Corp., won the upper hand in a six-year-old hostile takeover battle and succeeded in placing five new directors on Phoenix's 15-member board. Mr. Shah, one of the five new directors, described the victory as "just a first step." Police arrested Mr. Davison before the end of the meeting and temporarily detained him on a complaint by Mr. Shah and associates that he had failed to call an extraordinary shareholders' meeting. "We are going to make a decision: Do we pull the plug and get out or do we try to live under the new circumstances?" Mr. Davison said after the meeting. He acknowledged, however, that his battle to keep control of the company he has run for 21 years effectively ended last year when he failed to keep up payments on loans from two Thai finance companies, Phatra Thanakit and National Finance, and was forced to surrender most of his shares in Phoenix, which he had pledged as security. Mr. Davison, speaking as he prepared to leave for a visit to the Seychelles, where he owns a resort hotel, said he hadn't made a final decision, but "you can say I am considering resigning." Mr. Davison said most of Phoenix's head office staff and some employees at its pulp mill in northeastern Khon Kaen province are planning to quit in the face of the takeover. Half of the 50 employees of the company's Bangkok office already have given notice. "I have not encouraged this," Mr. Davison said.

NO

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Del Monte Royal Purchases Control Of Saico, Plans Asset Listing in Asia. If the article mentions that Siam Agro Industry Pineapple & Others Co. has defaulted recently, respond with 'AFTER'. If the article mentions that Siam Agro Industry Pineapple & Others Co. will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Siam Agro Industry Pineapple & Others Co. is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Siam Agro Industry Pineapple & Others Co. is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Siam Agro Industry Pineapple & Others Co. has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Siam Agro Industry Pineapple & Others Co.. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

SINGAPORE -- Del Monte Royal Foods Ltd. has bought 50.1% of a debt-ridden Thai pineapple producer and the South Africa-based company is planning to list its Asian assets in Singapore, Hong Kong or Manila. The acquisition of listed Siam Agro Industry Pineapple & Others Co., which executives said was completed late last week, will be announced Monday. Del Monte Royal bought 13.3 million shares of Saico, as the company is known, for 133.2 million baht ($3.6 million). The critical component of the purchase, Del Monte Royal said, was reaching an agreement on restructuring Saico's 1.4 billion baht in loans from Thai Farmers Bank Ltd. Del Monte Royal, listed on the Johannesburg Stock Exchange, produces and sells processed fruit and vegetables in Europe, Africa, the Middle East, South Asia and Southeast Asia. It is a supplier to Del Monte Foods Co. of the U.S., but has no ownership linkage with the American company, which listed in New York this year. Vivian Imerman, Del Monte Royal's chairman and chief executive officer, said that his company will expand in Asia. "Saico will be the first of a series of acquisitions," said Mr. Imerman, who added that he is looking for possible deals in Indonesia, Malaysia and Thailand. Mr. Imerman said his company currently accounts for 35% of world pineapple production; he wants market share to reach 50%. Del Monte Royal will "take the opportunity" now available with the Asian financial crisis to add regional assets "at a viable price," he said. "Some years ago, it was too expensive," Mr. Imerman added. The company also intends to list its Asian operations on an exchange in the region this year, he said. Mr. Imerman said Del Monte Royal will decide soon whether to seek a listing in Singapore, Hong Kong or Manila. Del Monte Royal has had a plantation in the Philippines for more than 60 years. Mr. Imerman said the Philippine company, under the name Del Monte Pacific Resources Ltd., has thrived during the Asian crisis with gains in profitability. He credited this on being well-balanced, with 50% of revenue from exports and 50% from domestic sales. In recent years, Saico has done anything but thrive. Set up in 1978 in southeast Thailand near Rayong, Saico became one of the country's biggest pineapple exporters. But production has dropped sharply in the past three years as the company struggled with a huge debt burden. Thomas Warner, a Del Monte Royal executive who earlier this year became managing director of Saico, said negotiations with Thai Farmers Bank on restructuring the debt went well. He said the bank agreed to reschedule repayment on about one billion baht in debt, while waiving between 300 million baht and 400 million baht in accrued interest. The bank has assumed ownership of Saico's plantation and leased the land back to the company. In making the Thai investment, Del Monte Royal has negotiated with Thai authorities on land use, often a complex issue for foreign investors. Last year, Mr. Imerman met Prime Minister Chuan Leekpai to talk about his company's hope to invest, and Mr. Warner said Del Monte Royal and Saico are "very pleased" with assistance from the government and Thailand's Board of Investment. A Saico executive said Del Monte Royal has been granted the opportunity to use the land forming the plantation and Saico is reasonably confident it will eventually get a title to the land. Under the terms of its acquisition, Del Monte Royal has the right to eventually increase its stake in Saico to nearly 80%. "We are looking at investment to raise Saico's production," Mr. Warner said.

NO

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Prudential's Indonesia Unit Declared Bankrupt by Court. If the article mentions that Prudential Life Assurance has defaulted recently, respond with 'AFTER'. If the article mentions that Prudential Life Assurance will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Prudential Life Assurance is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Prudential Life Assurance is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Prudential Life Assurance has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Prudential Life Assurance. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

JAKARTA, Indonesia -- An Indonesian court has declared the Indonesian unit of giant British insurer Prudential PLC bankrupt because of a disputed $400,000 fee, offering a fresh example of what foreign investors say is the biggest obstacle to investment here: the country's unpredictable legal system. The case involves some of the same lawyers who handled a nearly identical bankruptcy petition against a local unit of Canadian insurer Manulife Financial Corp. almost two years ago, and underscores how slowly Indonesia is moving to improve its legal framework, despite repeated problems involving big global companies. In a ruling Friday, the Jakarta Commercial Court declared PT Prudential Life Assurance, one of Indonesia's largest life insurers, bankrupt because it failed to pay a fee to a former consultant. The court appointed a custodian to take control of the business until Prudential pays the disputed fee to Lee Boon Siong, a Malaysian citizen. In response, Prudential shut its Indonesia offices Monday, although it said it will keep honoring policy claims. It said it will seek to have the bankruptcy decision overturned by the Supreme Court as soon as possible. As of Monday afternoon, the company said it hadn't received written notification of the verdict. When it does, Prudential has eight days to appeal. "We're going to fight vigorously to make sure we get this decision reversed," said Charlie Oropeza, the unit's president director. He said Prudential is one of Indonesia's strongest life-insurance companies and had a pretax profit of 71 billion rupiah ($8.2 million) last year, up nearly fourfold from 2002. Prudential PLC isn't related to Prudential Insurance Co. of the U.S. Under Indonesian law, a company can be declared bankrupt by the commercial court if it has more than one outstanding debt, even if its assets far outweigh its liabilities. That provision tripped up Manulife's local unit, PT Asuransi Jiwa Manulife Indonesia, in June 2002, when the same court declared it bankrupt for failing to make a dividend payment. Although the decision was reversed by the Supreme Court within weeks, it and other judgments have persuaded many in Indonesia's foreign business community not to rely on courts to enforce contracts or protect their legal rights. The World Bank has repeatedly cited Indonesia's weak legal system as a major impediment to foreign investment. Prudential's Indonesian unit, established in 1995, is a market leader in investment-linked insurance policies, and has about 100,000 customers, Mr. Oropeza said. Prudential PLC of the U.K. owns 94.5% of the unit, and local firm PT Sasana Dwi Paramitra owns the rest. Mr. Oropeza said the bankruptcy claim is rooted in a dispute between Prudential and Mr. Lee, who worked as a consultant in charge of training and recruiting sales agents. Prudential terminated Mr. Lee's contract in late 2003, Mr. Oropeza said. The executive declined to discuss the circumstances leading to that decision, but said it was taken after consulting company lawyers. Mr. Lee filed a lawsuit against Prudential, seeking $40 million in damages. On Friday, the Commercial Court ruled Mr. Lee is owed $400,000 and said a custodian should be appointed to run the company until he is paid. Mr. Lee couldn't be contacted Monday. His suit was handled by Lucas SH & Partners, a law firm that played a key role in the bankruptcy petition against Manulife. The law firm's managing partner, Lucas, who like many Indonesians uses only one name, said Prudential's decision to terminate Mr. Lee's contract "wasn't based on reason," and wasn't adequately explained to his client. Mr. Lucas said the decision to declare Prudential bankrupt was justified as the court found the company hadn't settled its debt to his client. Indonesian government officials said the Prudential decision could be reversed by the Supreme Court, and urged investors and policyholders not to panic. As the court's decision isn't final, "all clients of Prudential insurance should be calm and hope that the company can continue its operations," said Herwidayatmo, chairman of Indonesia's capital markets regulator, known as Bapepam. Mr. Herwidayatmo said the government sent Parliament nearly one year ago a proposed legal revision that would give the Finance Ministry the sole authority to declare an insurance company bankrupt. However, Parliament hasn't acted on the draft, he said.

NO

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Prudential's Indonesian Unit Is Allowed to Reopen. If the article mentions that Prudential Life Assurance has defaulted recently, respond with 'AFTER'. If the article mentions that Prudential Life Assurance will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Prudential Life Assurance is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Prudential Life Assurance is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Prudential Life Assurance has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Prudential Life Assurance. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

JAKARTA, Indonesia -- The Indonesian unit of United Kingdom-based insurer Prudential PLC has been allowed to resume operations while the company appeals a controversial court ruling that forced it to close earlier this week, a company lawyer said Friday. The unit, PT Prudential Life Assurance, shut its doors Monday after the Central Jakarta Commercial Court declared it bankrupt due to its failure to pay a fee to a former consultant. "The supervisory judge yesterday issued a ruling allowing the company to resume operations," Cemby Hutapea, a company lawyer, told Dow Jones Newswires. The consultant, Lee Boon Siong, demanded $40 million in damages after Prudential terminated his agent-training contract last year. The court ruled April 23 that Mr. Lee is owed $400,000, and appointed a custodian to take control of the business until Prudential pays the fee. In response, Prudential -- which insists it is fully solvent -- shut its offices in Indonesia Monday, but said it will keep honoring policy claims. Prudential Life offices in the country remained closed Friday, as officials waited for a formal notification from the court, Mr. Hutapea said. The case underscores the unpredictability of Indonesia's courts, which have handed down a string of questionable rulings against foreign investors, and contributed to a sharp drop in investment in Indonesia. In 2002, a court declared PT Manulife Indonesia, a unit of Canada's Manulife Financial Corp., bankrupt in a legal battle against its former local shareholder. That case became a byword for legal corruption, although the Supreme Court later overturned the verdict after international financial institutions intervened and threatened reprisals against Indonesia.

NO

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Investors balk at MFS plan to split in two. If the article mentions that White has defaulted recently, respond with 'AFTER'. If the article mentions that White will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. White is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. White is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. White has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of White. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

MELBOURNE -- The market value of Australian property-investment and funds-management company MFS Ltd. fell by more than half Friday after it announced plans to split its business and issue A$550 million (US$484 million) in shares to existing holders to shore up its balance sheet. Investors, angry over the management's inability to arrest the stock's 90% fall from its May peak, questioned the wisdom of issuing shares when fallout from the U.S. subprime-mortgage crisis is hammering stock markets. "The market is now questioning the credentials of management and their ability to successfully see out their proposed plan," said Shaw Stockbroking head of trading Jamie Spiteri. MFS shares dived 69% Friday to close at 99 Australian cents (87 U.S. cents). Deputy Chief Executive Craig White said MFS would consider its position given Friday's share rout. "We won't react in a panic manner," he said. "We will regroup over the weekend and...we will come up with the best way to move forward." The proposal is the latest in a string of announcements by the company that have left its outlook unclear in a market that is punishing companies with complicated structures, particularly those with debt about to mature. Concerns continue about the company's financial position, with A$150 million in debt due to mature before midyear. MFS plans to separate its Stella Group tourism-and-hospitality division and its financial-services business into two listed companies. MFS last year tried to sell Stella, which analysts value at about A$1.7 billion, to private-equity interests. Under the latest plan, Stella would try to reduce indebtedness across both entities through an entitlement issue, an offer by a listed company inviting its shareholders to buy new shares in the company at a set price. It is similar to a rights issue except the shares can't be traded on to someone else. After the restructuring, MFS shareholders would hold shares in both MFS Financial Services and Stella. MFS said it always intended the businesses to be separated ultimately. Mr. White said the move is aimed at making the businesses easier for shareholders to understand. The market reaction was due to investors mistakenly thinking MFS needs the entitlement issue to refinance the A$150 million in maturing debt, he said. "It is illogical. The debt is due in March and the capital won't come until April-May," he said. The capital raising is aimed at strengthening the company's balance sheet, he said. MFS has between A$1.4 billion and A$1.5 billion of debt, most of which matures between 2010 and 2012, White said. Investors are worried also about the level of debt being carried by rival City Pacific Ltd. , which last Monday said it offered to buy MFS's financial-services arm. City Pacific responded to the market's concerns Friday, saying its debt as of Dec. 31 was about 46% of net assets, and that loans in arrears at its City Pacific First Mortgage Fund had fallen to A$41 million now from A$95 million in June. "The directors consider that all principal and interest will be recovered in full in the current financial year," the company said. The City Pacific proposal, which analysts have said undervalues MFS' financial-services business, has a value of about A$1.33 billion, through the issue of 225 million City Pacific shares at A$3.70 a share and the assumption of A$500 million in debt.

NO

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Alphatec Plan May Provide Debt Blueprint for Thailand. If the article mentions that Alphatec Electronics has defaulted recently, respond with 'AFTER'. If the article mentions that Alphatec Electronics will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Alphatec Electronics is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Alphatec Electronics is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Alphatec Electronics has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Alphatec Electronics. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

Price Waterhouse is putting the finishing touches on a document that will soon tell investors a lot about Thailand's progress in fixing its debt problems. The document is a restructuring plan for Alphatec Electronics, the bankrupt Thai computer-chip assembler whose collapse last year symbolized the roots of Asia's financial distress. Burdened by debt and accused by auditors of lying in its financial statements and misusing funds, Alphatec was the first Thai company forced into bankruptcy under a code written this year. But now it could be the first out, possibly boosting investor confidence that Thai companies and their creditors are beginning to resolve the country's massive debt problems. To date, that slow process throughout Asia has left many investors wary. Price Waterhouse, Alphatec's court-approved planner, is expected to submit the restructuring proposal to Thai officials as early as Monday. If creditors approve the restructuring of $375 million in debt, the moribund manufacturer will have a clean balance sheet and a chance at a new life, while bankers and bond investors will have a potential road map for fixing other debt problems in Thailand. If creditors don't approve it, a potentially messy foreclosure looms. "It is absolutely the landmark case in Thailand," says Robert Appleby, a partner with Hong Kong-based Asia Financial Products, and a creditor to Alphatec. The only trouble is, nobody knows how the plan will be greeted by bankers, who hold the key to moving the company out of bankruptcy. The process in any bankruptcy restructuring is plagued by competing interests among different classes of creditors. But this case is further clouded by the shaky state of Thai banks, which are major creditors and might be unwilling or unprepared to write off the debt. "How things are going to turn out, I really don't know," says Robert Linck, an executive at ING Barings and chairman of the creditors' steering committee on Alphatec. When asked if he was optimistic, he said, "to a certain extent." The case is further burdened by lingering bad blood among bankers toward Alphatec's founder and former chief executive, Charn Uswachoke, whom many creditors viewed as the central player in Alphatec's demise. As the major shareholder, Mr. Charn blocked a debt-restructuring effort earlier this year. He has had no say in this restructuring plan, though, and his shareholding would be rendered practically worthless under the proposal. Mr. Charn denies any wrongdoing at Alphatec, and says he wants more involvement in the process. "I'm the owner of the company, so I should have the clearest sense of which direction Alphatec should go," he said. He has his own complaints about some of the creditors involved. "Part of the problem was that they screwed up, and then blamed me for it," he said. As uncertain as its outlook appears, Alphatec is in an enviable position compared with many other Thai companies. As a producer of an export-oriented product that can earn U.S. dollar revenue, it is a company that strategic investors are willing to consider. The lynchpin to the restructuring will be the injection of new capital into the company by a substantial equity investor, or possibly more than one. But that new investor might not come from within the computer-chip industry. Instead, people familiar with the restructuring say an investment-management company might ride to the rescue. One name mentioned by several people familiar with the restructuring is American International Group , the giant U.S. insurance company whose investments in the region are substantial. Its 80-year roots trace back to Shanghai. An executive with the direct-investment arm of AIG declined to comment on the company's interest in Alphatec. Robert Mollerstuen, acting chief executive officer of Alphatec, says that a "major international company" has already signed a letter of intent to take a significant chunk of Alphatec's equity, though its commitment is not yet certain. He declined to name the company. The other key to the plan will be persuading banks and bondholders to take a massive writeoff on their claims, in ex change for an equity interest in the company. For the plan to be approved, Alphatec will need to secure the approval of 75% of bond holders, based on the amount of their claims. But it isn't clear yet whether everybody is on board. "Alphatec's rehabilitation plan doesn't seem to be working very well," says one Japanese banker who lent to the company. In the face of these uncertainties, Alphatec has managed to continue operating while under court supervision and to keep some loyal customers. "We see continued good services from them," says the local manager from a multinational chip maker that uses Alphatec as a supplier. "We rate them one of our top suppliers." Mr. Mollerstuen notes that the sharp depreciation of the Thai baht makes the company one of the lowest-cost chip producers in the world. Still, a bruising global downturn in the chip cycle has hurt the company. Mr. Mollerstuen says the company has already reduced its workforce by more than 70%, but the industry turmoil is putting a crimp on orders. "We have been draining cash since [September]," he says. "We are looking for a working capital infusion some time in December." That places creditors in a tricky situation. If they liquidate the company, they'll be stuck with equipment that might not have much resale value. But if they agree to keep it going, they won't get their cash back unless the company can produce growing profits in an increasingly tough environment. Added to that, Alphatec is on a list of 47 companies that the Stock Exchange of Thailand is threatening to boot off the exchange if they can't raise capital. Alphatec's shares were suspended from the Stock Exchange of Thailand in June 1997. "The cycle is certainly going against them, big time," says one investor in convertible bonds issued by Alphatec in 1994. Mr. Mollerstuen says the restructuring plan will include a sweetener for creditors who are willing to convert their shares to equity: a promise of a big payout in eight to 10 years if the company meets cash-flow targets. "Things will pick up, and that's where a company like Alphatec has a future," says ING's Mr. Linck. If enough creditors agree with him, then confidence in Thailand's future might pick up, too. But progress is clearly not coming easily.

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled PricewaterhouseCoopers Files Restructuring Plan for Alphatec. If the article mentions that Alphatec Electronics has defaulted recently, respond with 'AFTER'. If the article mentions that Alphatec Electronics will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Alphatec Electronics is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Alphatec Electronics is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Alphatec Electronics has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Alphatec Electronics. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

BANGKOK, Thailand -- Representatives from PricewaterhouseCoopers filed a restructuring plan for Alphatec Electronics PCL, a low-end computer chip assembler and Thailand's first company to test new bankruptcy laws written earlier this year. Under the plan, Alphatec will receive a cash infusion from a strategic equity investor, and creditors will agree to write off a substantial portion of their debt in return for an equity stake in the company. In order for Alphatec to emerge from bankruptcy, 75% of the company's creditors will have to agree to the plan. Alphatec owes creditors about $375 million in past due credit. They will be asked to write off 80% to 90% of that debt, in return for about a 20% stake in the company, in addition to options for additional cash if the company meets long-term performance targets. "Probably a meeting will be held toward the end of November or early December," said John Perrins, director of corporate finance and restructuring at PricewaterhouseCoopers, Alphatec's court-approved planner. "We are certainly very hopeful that it will be approved. There aren't a lot of alternatives," said Mr. Perrins. If creditors reject the plan, the company will be set down a course toward liquidation that might not yield much for creditors since Alphatec's equipment tends to depreciate rapidly in the dynamic chip-assembly business. There is an element of urgency to getting the plan approved, Mr. Perrins said, because the global downturn in the chip market has dried up business for Alphatec, which has continued to operate while under court supervision. "It is definitely in need of working capital as well as the new equity," Mr. Perrins said. "If the plan is not approved, like any company, eventually it will run out of cash and we are getting quite close to that situation now."

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Alphatec's Restructuring Hits Snag With Creditors. If the article mentions that Alphatec Electronics has defaulted recently, respond with 'AFTER'. If the article mentions that Alphatec Electronics will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Alphatec Electronics is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Alphatec Electronics is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Alphatec Electronics has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Alphatec Electronics. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

An important test case of Thailand's new bankruptcy law appears to be spinning out of control. For the second time in a week, creditors Tuesday put off voting on a restructuring plan for Alphatec Electronics, a failed Thai chip assembler, placing an effort to revive the company on the verge of collapse. If the restructuring plan does crumble, creditors say it will represent a big step backward for Thailand's own financial restructuring, which could hurt investor sentiment in what many have come to believe is Asia's fastest-reforming economy. Alphatec was placed under court supervision in May, under a new bankruptcy law rewritten to make it easier for creditors to restructure companies that had defaulted on debt. But it has been a unique case. To date, creditors have been reluctant to push their defaulted clients into bankruptcy, fearful of placing much faith in the new law. That has slowed the whole restructuring process, leaving creditors and majority shareholders to fight it out on their own. Bankruptcy removes the majority shareholder from the equation. In the case of Alphatec, creditors saw few alternatives to that route. The majority shareholder, Charn Uswachoke, was accused of doctoring Alphatec's books before the company collapsed; he then blocked restructuring efforts in March. (Mr. Charn has denied any wrongdoing.) If Alphatec is successfully restructured under court supervision, some hope it will embolden creditors to use the courts and speed up the process of reform. Now, however, that has been thrown into doubt. Krung Thai Bank, Alphatec's biggest creditor, has raised concerns about key elements of the plan, which calls on creditors to write off 90% of Alphatec's $363 million in debt. In return, they would get a 20% equity stake in the restructured company plus a promise of additional returns if the company meets long-term performance goals, according to a copy of the restructuring plan, which was obtained by The Asian Wall Street Journal. In addition, the plan says, the lenders could be asked to invest a total of $15 million to $20 million in the company during the next two years to provide working capital. American International Group , a U.S. insurer and a large investor in Asia, has signed a letter of intent to invest $40 million in Alphatec, in return for 80% of the restructured company's equity. But Krung Thai representatives complained at the creditors' meeting Tuesday that the bank's board of directors isn't prepared to write off such a large amount of debt. They also protested against the structure of the deal, which would essentially create a new company that would be given the assets of Alphatec. Krung Thai argues that is against the law. (Union Bank of Bangkok, a smaller creditor, also expressed similar concerns with the plan.) "What we have to do between now and next Monday is talk to both the investor and Krung Thai and reach some kind of compromise with them," says John Perrins, an executive at PricewaterhouseCoopers, which has been assigned by the Thai courts to oversee the company. But the prospects for a compromise by Monday, which is when creditors will meet again, don't look bright. "It would be very difficult for me to change what is in fact reality," Mr. Perrins acknowledges. The reality, he says, is that Thai banks are unlikely to be able to recover much more from Alphatec than is proposed. Alphatec, in fact, is on the verge of complete collapse. Earlier this year, it lost one of its major customers, Texas Instruments Inc., when the company sold one of its units that had been doing business with Alphatec. The move will cut revenue by 50%. "We are burning cash," says Alphatec President Willem Devries. He says Alphatec has several new customers lined up, and could have its Bankgok plant running at fuller capacities -- currently it is running at just 50% of capacity -- by the second quarter of next year. But the customers won't sign on until Alphatec's financial troubles are resolved, he says. And he says the company will run out of cash to pay its employees by January. Some creditors find the present situation particularly galling, because Krung Thai, as Alphatec's largest creditor, has played a key role in restructuring talks for 18 months, sitting on the creditors' steering committee, and appeared to be ready to accept the plan. "It gets to the board level, and there seems to be a lack of understanding," Mr. Perrins says. Further, Krung Thai is a government-owned bank. As a result, some creditors say its rejection of the restructuring plan could send a negative signal to investors about the Thai government's seriousness about reform. Krung Thai executives weren't available to comment. Of course, PricewaterhouseCoopers might reach some agreement with Krung Thai by Monday. But if it doesn't, Mr. Perrins says, he might walk away from Alphatec as an adviser. He warns that AIG could well walk away too. AIG declined to comment. "I don't want to create a situation in which people just don't want to negotiate," he says, but he adds that at some point, "you have to say enough is enough."

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Creditors Reject Rescue Plan For Alphatec, Oust Advisers. If the article mentions that Alphatec Electronics has defaulted recently, respond with 'AFTER'. If the article mentions that Alphatec Electronics will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Alphatec Electronics is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Alphatec Electronics is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Alphatec Electronics has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Alphatec Electronics. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

BANGKOK, Thailand -- In a blow to the progress of debt restructuring in Thailand, creditors of Alphatec Electronics PCL Monday rejected a plan to revive the debt-laden company. In the process, creditors forced the ouster of Alphatec's court-appointed planner, PricewaterhouseCoopers, which had formulated the rehabilitation plan, and pushed the company toward the brink of liquidation. Leading the move to reject the rehabilitation plan was government-owned Krung Thai Bank PCL, Alphatec's largest creditor, with about a third of the semiconductor assembler's outstanding obligations. Legal advisers to Krung Thai -- which had worked with a PricewaterhouseCoopers-led steering committee that formulated the plan -- said the plan would leave the company "as a corpse." Under the plan, creditors were asked to write off about 90% of their debt, in return for a 20% stake in the company and a promise of additional cash if the company met performance goals. At the same time, American International Group and Investor AB of Sweden were to invest $40 million of new equity for an 80% stake in the company. Kraisri Kaewparadai, a Krung Thai Bank legal adviser, said creditors were concerned the new shareholders would have no responsibility for the company's liabilities, and existing creditors' claims on Alphatec would be massively reduced without any guarantees of recovering funds. "It meant that all the creditors would have to rely on [Alphatec's] performance in the future, but the plan does not offer guarantees and will leave Alphatec only as a corpse," he said. Alphatec could be left in the same morbid state if it is pushed into liquidation, which at this point appears weeks away, unless Krung Thai, the investors and the other creditors can agree on an alternate plan. Advisers to the creditors said it wasn't clear at this point how Krung Thai's objections could be addressed. The debt-restructuring plan is a landmark in Thailand because it is the first big case to test a new bankruptcy law written earlier this year. Many creditors believed that its successful conclusion could speed the process of restructuring in Thailand, by emboldening creditors to push more companies into court-supervised bankruptcy. Currently, most cases -- many of them much larger -- are stuck in equally wrenching negotiations between creditors and the majority shareholders of companies which have defaulted. Alphatec was one of Thailand's first companies to collapse last year, after an independent audit by Price Waterhouse -- the predecessor to PricewaterhouseCoopers -- reported that Alphatec had overstated profit by at least $164 million between 1994 and 1997. Its founder and majority shareholder, Charn Uswachoke, was forced to resign after the disclosure. In the past he has acknowledged improper transactions, but he has also denied any wrongdoing. While Mr. Charn hasn't played a role in these negotiations, his figure has loomed large over the talks. Some creditors were concerned that the rehabilitation plan would have freed Mr. Charn from personal guarantees to creditors. Alphatec would have been reorganized, with a new name and a Cayman Island incorporation, under the rejected plan. In order for Alphatec to emerge from bankruptcy, creditors holding 75% of the value of Alphatec's debt would have had to agree to the plan. But creditors holding a total of 6.3 billion baht ($176.6 million) in debt voted against the plan, compared to a vote for the plan from creditors holding 6.6 billion baht, according to John Perrins, the outgoing court-appointed planner from PricewaterhouseCoopers. Of the votes against, 4.2 billion baht was represented by Krung Thai Bank. Alphatec now has until Friday to find a new planner. Willem de Vries, president of Alphatec, said he would take the unusual step of proposing himself as the planner. He said at this late stage in the discussions, it wouldn't make sense to bring in an outsider unfamiliar with the details of the restructuring efforts. He also said he would begin discussions with some Alphatec customers who have expressed interest in investing in the company. It isn't clear how long AIG and Investor will stay in the negotiations. Much depends on whether Alphatec's own customers begin abandoning the company in search of other suppliers. The company has already been slammed by the downturn in the global chip business. Mr. de Vries estimates that the company will be out of cash to pay employees and suppliers by late January. "Of course, this move ... will not help," he said of Monday's vote.

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Investors Keep Crowding Into China, Sometimes Only to Find a Great Wall. If the article mentions that Alphatec has defaulted recently, respond with 'AFTER'. If the article mentions that Alphatec will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Alphatec is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Alphatec is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Alphatec has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Alphatec. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

F oreign investors pumped $5.16 billion into China in November, showing increasing confidence in the country's growth after a slump earlier in the year. The investments are not without friction as Asia's most promising market wants to grow, yet keep control of decisions and the process of change. The first Buick rolled off the production lines in Shanghai, but General Motors is quietly looking for ways to make its $1.52 billion joint venture more viable with a smaller, less expensive car. The prospects for the Buick -- chosen by GM's Shanghai partners because of its popularity in China before Communist rule -- have withered as China's growth has slowed and as Beijing restricts government car purchases to cut costs. New rules may ban car purchases by government employees altogether, further clouding the future for foreign car makers who have been crowding into China with images of getting 1.2 billion consumers off their bicycles. Meanwhile, as China has warmed to the idea of professional sports leagues, some foreign companies, citing too much government meddling, are withdrawing their league sponsorships. Philip Morris Asia Inc. ended the Marlboro League of top-division soccer clubs, and in China's only other pro sport, basketball, Ford Motor Co. and others have ended league sponsorships in recent months. The government wants the sponsor money to build China into a world sports superstar, but also wants to retain control of decisions such as selling tickets, trading players and arranging television rights. Some sports officials realize the risk in losing sponsors, and are slowly coming around. "We're not familiar with the market," says Liu Yumin, director of marketing for the national basketball federation. "We're from the planned economy. We're telling sponsors, 'You should help us,' and not thinking about what to give in return." Others see negative effects of commercializing Chinese sports, including a change in the government's gender-blind attitude. Since the 1950s when the state set up a massive training network, girls and boys have been recruited in equal numbers. But with pro sports a new thinking is creeping in as the market overwhelmingly prefers men's sports. "You mention women to international companies, and they don't want to sponsor them. They only want to sponsor men," says Wu Shouzhang, the assistant head of the Chinese delegation to this year's Asian Games. But while both foreign companies and the Chinese feel that they are giving something up in their new-fangled alliances, both sides fear stalled growth that could trigger a banking crisis and spark social unrest. And as investors remain reasonably assured China won't devalue its currency, the yuan, they are likely to continue seeing opportunity in China. Deutsche Bank signaled it would cash out of its industrial assets, including DaimlerChrysler, by announcing plans to put holdings of $24.3 billion into a separate corporation. Petersen Cos. said it would be acquired by Emap for $1.2 billion plus the assumption of $300 million in debt. Salim Group will sell two 30% stakes in Indofood, one to Japan's Nissin Food, the other to its Hong Kong affiliate, First Pacific, to raise US$570 million. General Motors will increase its stake in Isuzu Motors to 49% by buying shares valued at $450 million. Royal Dutch/Shell unveiled a major restructuring and said it would post a $4.5 billion write-off in its fourth quarter. MCI WorldCom acquired about 15% of OzEmail, one of Australia's leading Internet service providers, and will make a cash offer to buy all of OzEmail for US$322.8 million. Members of the Association of Southeast Asian nations agreed to admit Cambodia although no definite date was set. Also, at the two-day summit of the trade group, Japan said it will lend Asian nations as much as $5.14 billion to help boost their ailing economies Alphatec's creditors rejected a plan to revive the debt-laden Thai chip assembler, forcing the ouster of its court-appointed planners, PricewaterhouseCoopers. Nissan Motor said it will cut production capacity and may close plants. France's Seita is acquiring Consolidated Cigar of the U.S. for $531 million. Japan's government sold one million shares in Nippon Telegraph & Telephone, raising $7.3 billion. Publishing & Broadcasting plans to buy Melbourne casino operator Crown in a deal valued at about $346.9 million. Japan's ruling party agreed on last-minute tax breaks, boosting tax cuts planned for next year to $79.7 billion. America Online plans to launch a Spanish- and Portuguese-language version through a joint venture with Venezuelan media conglomerate Cisneros. Malaysia plans to revive the controversial Bakun hydroelectric dam project, but on a smaller scale. Fuji Bank will sell its 44% stake in Kwong On Bank to the Development Bank of Singapore. Philip Green is forming a group of investors to bid $779 million for all of Britain's Sears. Ciba Chief executive Hermann Vodicka resigned in the wake of the collapse of Ciba's proposed merger with rival Clariant. Charles Schwab made its first foray into Canada by buying two small brokerage firms . ... Foster's wine division bought 51% of German wine club Heinrich Maximillian Pallhuber for $31.6 million. ... Press Holdings shut down the ailing weekly newspaper The European after failing to find a buyer. ... Dutch authorities gave Unilever's new, cholesterol-lowering margarine a positive assessment. ... Lucent Technologies opened a $60 million manufacturing plant in Brazil. ... LanChile is suspending its flights to the Falkland Islands as requested by Chile's government to protest the continued detention of Gen. Augusto Pinochet. ... Security firm Pinkerton will open new branches in Colombia, Venezuela and Argentina. ... International Economic Calendar

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Alphatec Restructuring Is Cleared, But Pact Receives Mixed Reviews. If the article mentions that Alphatec Electronics has defaulted recently, respond with 'AFTER'. If the article mentions that Alphatec Electronics will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Alphatec Electronics is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Alphatec Electronics is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Alphatec Electronics has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Alphatec Electronics. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

BANGKOK, Thailand -- Creditors narrowly approved a restructuring plan for Thailand's debt-riddled Alphatec Electronics PCL that ends more than 18 months of tortuous negotiation, but the plan still received mixed reviews. The deal, under which new investors will inject $40 million into the company and creditors will face steep initial losses, was hailed by some legal and financial officials as a significant step in resolving the burden of debt that is hobbling economic recovery in Thailand. But others cautioned that overall progress will remain slow until the government passes proposed bankruptcy and foreclosure legislation. Under the agreement, U.S. insurance giant American International Group and Sweden's Investor AB will invest a total of $40 million to take 80% of a new company, Alphatec Holding. The remaining 20% will be owned by creditors of the old company, who hold its outstanding debts of 13.9 billion baht ($378.6 million). Alphatec Holding will own 100% of Alphatec Semiconductor Packaging Co., a newly incorporated company that will take over the computer-chip assembler's assets and operations in Thailand. It will also hold 51% of Alphatec Electronics Corp. of Shanghai and 100% of its U.S. sales and marketing company, which is to become Alphatec Services Co. Alphatec Electronics' creditors have to swallow heavy initial losses under the deal but may eventually recover part of them. Under the agreement they also receive secured debt of $35 million issued by Alphatec Semiconductor Packaging and the possibility of a hefty payoff from a performance-linked, 10-year bond. If Alphatec Holding achieves profit averaging $130 million a year for the last three years of the bond, the payoff would reach $55 million. Alphatec and its creditors have battled over a restructuring plan since mid-1997 and creditors approved it Tuesday with the narrowest of margins. In all, 85% of Alphatec's 1,200 creditors agreed to the deal. They hold 75.2% of its $379.8 million of debts, just clear of the 75% minimum required for the deal to get through. A crucial factor in Tuesday's agreement was the support of Krung Thai Bank PCL, Alphatec's biggest creditor with outstanding loans of 4.2 billion baht, which had rejected the package as recently as mid-December. Krung Thai decided to approve the package after a series of amendments that ensure guarantors of Alphatec's debts, including its founder and former Chief Executive Charn Usawoke, do not automatically escape their obligations, the bank's legal adviser Kraisri Kaewparadi said. Krung Thai could still lose up to three billion baht of outstanding loans but concluded it was better to accept this deal than the alternative, liquidation of the company and disposal of its assets at very low prices, Mr. Kraisri said. Official receiver Wisit Wisitsora-at, who coordinated the creditors' meeting, hailed the agreement -- the first under a court-supervised process laid out by Thailand's 1998 bankruptcy law -- as a landmark case. "It's a good day for Thailand and for its legal and financial systems," echoed Jonathan Sissons, a managing partner of PricewaterhouseCoopers, the court-appointed planners who negotiated the package. Only a handful of restructuring negotiations have gone through the court process and the success in the Alphatec case should encourage more companies to try it, he said. "It has proved the process is workable." Management of Alphatec, battling to keep the company's client base intact through more than 18 months of uncertainty over its future, also welcomed the agreement. "We're ecstatically happy," said acting Chief Executive Officer Robert Mollerstuen. He now expects sales to existing customers to increase and plans to start seeking out new buyers. Alphatec expects its 1999 revenue to remain at the same level as last year at $38 million. But a sales increase in the second half of the year should achieve neutral or positive cash flow by the end of 1999 and return the company to profitability in 2000, said Willem de Vries, the company's president. Financial analysts, however, cautioned against seeing the Alphatec deal as the breakthrough that will accelerate the snail's pace of progress in restructuring Thailand's corporate debts and unraveling the nonperforming loans that continue to paralyze lending by Thai banks. Alphatec fell into difficulty in mid-1997 before the onset of Thailand's financial crisis, more as a result of fraud than debt, an analyst with a foreign brokerage firm in Bangkok noted. It was not therefore typical of many Thai companies, which were hit hard by high levels of foreign debt when Thailand's currency plummeted and then by the impact of the ensuing recession. Negotiations on restructuring their debts depend on government success in passing 11 economic-reform bills, including a new foreclosure law and amendments aimed at strengthening the 1998 bankruptcy law, the analyst said. But progress has stalled over opposition from senators in the upper house of Parliament, including some of Thailand's biggest debtors. Restructuring agreements so far account for only 107 billion baht or less than 4% of total outstanding debts of 2.7 trillion baht, official figures show. "We're years away from any solid change in fortunes if that is the pace maintained, and the pace will only change when we have bankruptcy and foreclosure laws with teeth," the analyst said.

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Shares of Alphatec Will Be Delisted From Thai Bourse Amid Revamping. If the article mentions that Alphatec Electronics has defaulted recently, respond with 'AFTER'. If the article mentions that Alphatec Electronics will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Alphatec Electronics is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Alphatec Electronics is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Alphatec Electronics has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Alphatec Electronics. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

BANGKOK, Thailand -- Shares in Alphatec Electronics PCL, a Thai maker of computer chips, will be delisted from the Stock Exchange of Thailand on Friday after more than a year of suspension, the SET said. The removal of Alphatec's shares, following court approval for Alphatec's restructuring plan in February, is the latest step in the cleanup of what was once the rising star of Thailand's computer industry. Under the plan, pushed through by its creditors, Alphatec will write down its paid-up capital to virtually nothing from 370 million baht ($10 million), then increase its capital to allow creditors to later swap some of the $375 million they are owed into equity. That will leave Alphatec with only 37 shares, making it unqualified for public trading, the SET said. The restructuring has led to the formation of a new entity, to operate under the name Alphatec Semiconductor Packaging, which has acquired what remains of Alphatec, including its management and staff. In April, two investors agreed to pump $40 million of cash into Alphatec Semiconductor to allow it to begin production. They are AIG Asia Opportunity Fund, an investment arm of U.S.-based American International Group Inc.'s Asian division, and Investment Corp. (Asia), a subsidiary of Investor AB of Sweden. Alphatec was one of the first companies to collapse as the worst economic crisis in decades began taking its toll on corporate Thailand. The company's financial troubles were uncovered a month after the economic crisis erupted in July 1997, when PricewaterhouseCoopers said that for about three years Alphatec had been reporting profits when it should have been reporting losses. The independent auditor also reported that more than $150 million of company funds had been paid to people related to Charn Uswachoke, Alphatec's founder and former chief executive, without approval from the board of directors. The company was the first to file for bankruptcy under Thailand's new bankruptcy law. At their peak in 1996, Alpahtec shares were trading at nearly $15 each (at the then-prevalent exchange rate). When trading in the shares was first suspended in August 1997, they were priced at about 67 cents each. The company's last trading price, in April 1998, was less than 0.02 cent each, according to the SET.

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Metech JV files lawsuit against ex-director Deng Yiming over missing diamonds. If the article mentions that Metech has defaulted recently, respond with 'AFTER'. If the article mentions that Metech will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Metech is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Metech is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Metech has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Metech. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

CATALIST-LISTED Metech International on Monday (Mar 13) said a lawsuit has been filed against Deng Yiming, one of the owners of its subsidiary's former joint venture (JV) partner X Diamond Capital, over missing diamond seeds and loose diamonds. The pieces were last in Deng's possession, and he had, to date, not satisfactorily addressed issues relating to them, Metech said in a bourse filing. The JV entity, Asian Eco Technology (AET) ' established on Sep 24, 2021 between Metech's wholly-owned subsidiary, Asian Green Tech (AGT), and X Diamond Capital to manufacture and distribute lab-grown diamonds ' had thus commenced legal action in the General Division of the High Court against Deng. On Monday, Metech also said AET's directors, which used to include Deng as well, had filed a police report on issues relating to the missing diamond seeds and loose diamonds on Feb 14. This was after AGT on Jan 17 issued a default notice in writing to X Diamond Capital to terminate the JV agreement with the partner. It was on grounds that the company and its appointed directors in AET, namely Deng and Yang Hanyu, failed to satisfactorily address numerous issues and irregularities relating to the JV. Apart from missing diamond seeds and loose diamonds, there were also issues relating to outstanding loan advances, irregularities with the importation of machines supplied to AET, and the sale of machines to AET at an inflated price, Metech had noted. Deng had been removed as AET's director by a members' resolution in writing dated Jan 17, which was passed on the same day. Metech closed up 52.2 per cent at S$0.07 on Monday.

NO

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Utusan Melayu appeal against suit fixed for Dec 1. If the article mentions that Utusan Melayu has defaulted recently, respond with 'AFTER'. If the article mentions that Utusan Melayu will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Utusan Melayu is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Utusan Melayu is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Utusan Melayu has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Utusan Melayu. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

PUTRAJAYA: The hearing of an appeal by Utusan Melayu (M) Bhd and its former journalist Raja Syahrir Abu Bakar in a defamation suit filed against them by veteran lawyer Manjeet Singh Dhillon has been postponed to Dec 1. The appeal was slated for hearing today before a five-member Federal Court panel but was postponed as the lawyer representing the Malay daily's journalist was undergoing a 14-day self-quarantine at home. This was informed by lawyer representing Utusan Melayu Datuk Wong Rhen Yen to the court today when he sought for an adjournment. "I am constrained to seek an adjournment because the counsel for the first appellant (Raja Syahrir) had to be quarantined. "He was in contact with a person who had close contact with a minister in the Prime Minister's department who tested positive for Covid-19," he said. In his application for postponement, Wong also said he had recently taken over as the lawyer for Utusan Melayu from Messrs Shafee & Co on Sept 28 and needed to render an opinion to the liquidator as to the prospect of the success of the case. Utusan Melayu has been placed under the creditors' voluntary liquidation with an interim liquidator being appointed. He said he needed time to discuss with his client on the possibilities of settling the matter. Federal Court judge Datuk Vernon Ong Lam Kiat who chaired the panel allowed the adjournment saying that the matter was something unavoidable and counsel appearing for Manjeet, Americk Sidhu had no objections to the postponement. The court then set the matter to be heard on Dec 1 together with another similar appeal involving Raub Australian Gold Mining (RAGM) and Malaysiakini. "Because of an earlier direction by the Federal Court, both matters were set to be heard together," he said. The other judges presiding were Datuk Abdul Rahman Sebli, Datuk Zaleha Yusof, Datuk Seri Hasnah Mohammed Hashim and Datuk Rhodzariah Bujang. On Sept 26, 2011, Manjeet filed a RM2.5 million defamation lawsuit against former Padang Serai Member of Parliament N. Gobalakrishnan, Raja Syahrir, Utusan Melayu and Sistem Televisyen Malaysia Bhd (TV3) in relation to Gobalakrishan's interview with the media on Aug 16, 2011. In his statement of claim, he said that Gobalakrisnan had made derogatory remarks against him. On Sept 11, 2015, Manjeet won his suit against Gobalakrishnan, Raja Syahrir and Utusan Melayu at the Kuala Lumpur High Court but his suit against TV3 was dismissed. Then High Court judge Datuk Nor Bee Arifin (now Court of Appeal judge) ordered Utusan Melayu and Raja Syahrir to pay RM200,000 in damages and Gobalakrishnan RM150,000 in damages for defaming Manjeet. However, she found no case against TV3. On March 13, 2018, the Court of Appeal reversed the High Court's decision and ordered TV3 to pay RM200,000 in damages to Manjeet Singh. TV3 did not appeal against this decision. The appellate court, however, dismissed the appeals by Gobalakrishnan, Utusan Melayu and Raja Syahrir and affirmed the High Court's order. Gobalakrishnan has filed a leave to appeal to the Federal Court. On July 24, the same year, Utusan Melayu and Raja Syahrir obtained leave to appeal to the Federal Court. Meanwhile, RAGM is appealing against a High Court's decision dismissing its defamation suit against Malaysiakini over articles on the company's gold mining operations.

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Total Access Revises Terms Of $537.7 Million in Debt. If the article mentions that Total Access Communication PCL has defaulted recently, respond with 'AFTER'. If the article mentions that Total Access Communication PCL will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Total Access Communication PCL is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Total Access Communication PCL is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Total Access Communication PCL has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Total Access Communication PCL. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

BANGKOK, Thailand -- Total Access Communication PCL, Thailand's second-largest mobile-phone operator, appears to have won lenient terms on a $537.7 million debt restructuring. The company on Friday signed an agreement with 50 bank creditors to allow the company to delay repayment of its US$537.7 million in bank debts; a further $650 million in bonds isn't included in the deal. Total Access officials said the firm has given no equity to its creditors, no board seats, and no additional say in management. Instead, in exchange for extending maturities of its foreign loans by up to six years, the creditors are requiring Total Access to pay higher interest rates on its debts. The average interest rate will rise by 1.11 percentage points from 6.98% to 8.09%, Total Access officials said. The U.S. Export-Import Bank is the company's single largest creditor, with $101 million in loans. Others among the 50 lenders signing Friday's agreement include Citibank, Chase Manhattan, nine banks from Japan (representing about $150 million in loans), four from Britain, four from France, four from Germany, and four from Italy, along with the Finnish export-credit agency. Friday's agreement is one of the first major debt restructurings completed since the baht plunged last year and made dollar-denominated debts far costlier for Thailand's companies to repay. Total Access is in a stronger position than many other debt-laden Thai companies, as it comprises half of Thailand's duopoly in mobile-phone service. Its privileged position, awarded by government concession in the early 1990s, provides it with a large and reliable cash-flow stream. The firm has more than 930,000 subscribers. As the company has slashed its new investments, this is the first year in which Total Access has positive cash flow after subtracting investment costs, officials said. As part of the agreement, creditors agreed to lower the company's interest rates if it raises additional equity. If Total Access can raise $70 million in equity within 18 months, its average interest rate will fall by 0.375 percentage points. If it raises an additional $80 million during the following 18 months, the rate will fall a further 0.375 percentage points. The restructuring doesn't include Total Access's two dollar- denominated bonds, a $250 million euroconvertible bond and a $400 million bond issued in the U.S. "There is enough cash flow" to service the two bonds, said Wong Fan Voon, a Total Access vice president. The agreement includes extensions for 11 separate credit facilities that had maturities or principal repayments due in 1998, including a $200 million one-year syndicated loan that had been due in April 1998 but wasn't paid then. The total of $537.7 million in bank debt has been extended to reach final maturity in November 2004. During that time, Total Access will make quarterly payments of principal and interest determined by a model based on cash flow. The firm made its first quarterly payment Thursday, of $47.5 million. Lehman Brothers and Warburg Dillon Read, a unit of UBS AG, served as joint financial advisers to TAC during the restructuring negotiations, and Baker & McKenzie acted as primary legal counsel. Total Access's parent firm United Communication Industry PCL, or Ucom, is working with its creditors on a similar debt restructuring, said Boonchai Bencharongkul, the controlling shareholder of both companies and chairman of TAC. Ucom officials said the company has $540 million in debt, including $200 million in bonds. Last year, Total Access lost 19.70 billion baht, largely from foreign-exchange losses. Excluding its forex losses, the company would have recorded a net profit of 2.33 billion baht last year compared to 2.74 billion baht in 1996. The company is scheduled to release half-year earnings Aug. 15.

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled UPDATE 1-Singapore's Jurong Aromatics goes into receivership on debt woes. If the article mentions that Aromatics Corp has defaulted recently, respond with 'AFTER'. If the article mentions that Aromatics Corp will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Aromatics Corp is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Aromatics Corp is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Aromatics Corp has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Aromatics Corp. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

* Jurong plant shut down since Dec 2014 to fix technical issue * Plant includes 100,000 bpd splitter to make paraxylene for China (Adds quotes, background) SINGAPORE, Sept 30 (Reuters) - Jurong Aromatics Corp (JAC), which operates a large petrochemicals complex in Singapore, has gone into receivership because of debt problems, according to its restructuring firm and a filing with Singapore's accounting authority. JAC's debt problems mounted in recent months after it halted production in December to fix a technical issue. The company is the latest victim of a global commodities rout which has seen a Japanese shipper filing for bankruptcy on Tuesday and lower profits at global trading firm Louis Dreyfus. Specialist restructuring firm Borrelli Walsh said in a letter to JAC's creditors that two of its executives were appointed as receivers and managers of JAC this week by BNP Paribas. BNP Paribas is one of the lenders to the company and the security agent for its assets. JAC, which operates one of the world's largest integrated aromatics plants, declined to comment. Receivership is a type of corporate bankruptcy in which a receiver is appointed by bankruptcy courts or creditors to run the company. Thomson Reuters publication PFI reported in July that the company was studying rescue packages and debt restructuring options to restart the $2.4 billion plant. 'I presume it went into receivership because the partners can't work together to put in money to revive it,' said Colin Shelley, an analyst at energy consultancy FGE. Among the eight shareholders, South Korean conglomerate SK Group owns 30 per cent of the company and Chinese polyester maker Jiangsu Sanfangxiang Group owns 25 per cent. Glencore also has a 10 percent stake in the firm.

NO

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Singapore's Jurong Aromatics goes into receivership on debt woes. If the article mentions that Aromatics Corp has defaulted recently, respond with 'AFTER'. If the article mentions that Aromatics Corp will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Aromatics Corp is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Aromatics Corp is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Aromatics Corp has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Aromatics Corp. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

SINGAPORE, Sept 30 (Reuters) - Jurong Aromatics Corp (JAC), which operates a large petrochemicals complex in Singapore, has gone into receivership after debt problems, according to its restructuring firm and a filing with Singapore's accounting authority. JAC's debt problems mounted in recent months after it halted production in December to fix a technical issue amid a collapse in the price of oil and related products. Specialist restructuring firm Borrelli Walsh said in a letter to JAC's creditors that two of its executives were appointed as receivers and managers of JAC this week by BNP Paribas. BNP Paribas is of the lenders to the company and the security agent for its assets. JAC declined to comment. Receivership is a type of corporate bankruptcy in which a receiver is appointed by bankruptcy courts or creditors to run the company. The complex is one of the world's largest integrated aromatics plants. It operated a 100,000 barrels per day (bpd) condensate splitter, but since late last year those operations have been stalled.

NO

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Commentary: Worried about keeping your job? Here?€?s advice to soothe your concerns no matter how old you are. If the article mentions that Esprit has defaulted recently, respond with 'AFTER'. If the article mentions that Esprit will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Esprit is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Esprit is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Esprit has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Esprit. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

SINGAPORE: The coronavirus pandemic has caused huge disruption to lives and livelihoods. I don't think the world has seen the light at the end of the tunnel just yet. While here in Singapore, all of us are eagerly looking forward to Phase 3 ' when our economy opens up a little more and more rules on gatherings, activities and travel may be relaxed - health experts have cautioned this does not spell the end of the coronavirus threat. Until an effective vaccine is widely disseminated to the public, assuming the virus does not mutate, businesses and workers may have to hold their breath a little longer. Health Minister Gan Kim Yong has just highlighted on Wednesday (Nov 4) that Singapore must be prepared for a Phase 3 that could last a year or more even as the multi-ministry task force laid out a roadmap that could see Singapore enter this new phase of its reopening by end of the year. On the economic front, the Singapore Government has been effective in supporting businesses and workers with four Budgets through this storm but we are nowhere near exiting this disruption. The Singapore economy is expected to contract 5 to 7 per cent in 2020, with unemployment already at a decades-long high. The worst is definitely not over, as Government financial support to firms mainly through the Jobs Support Scheme is tapering off and targeted to end in early 2021. The pandemic has ended the fortunes of retail giants like Esprit and Robinson's. Scores of small- and medium-sized enterprises (SMEs), which employ 70 per cent of Singaporeans, are staring down their biggest crisis. SNAP OUT OF YOUR SLEEPLESS NIGHTS Given the economic uncertainty, many Singaporeans are having sleepless nights over the possibility that their heads may be next on the chopping board. My advice to you is this: Worrying gives you something to do, but is ultimately unproductive and meaningless. I would urge all those concerned about their jobs to focus on practical strategies to mitigate the risk of receiving the dreaded pink slip and be ready for such an eventual scenario. FOR ALL THOSE BELOW 35: CHASE AFTER YOUR DREAM JOB Living through the pandemic does not mean you park your career management activities on the back burner and do everything to cling on tightly to your job. Opportunities do present themselves during crisis times. And if you are below 35, without a home loan and family responsibilities, you should take risks to improve your career prospects and use this time to secure your dream role in an environment where everyone else is holding firm to their roles. The coronavirus has caused huge upheaval, but it has also created unprecedented opportunities for many sectors. Many of you are likely to have been working hard to stay employable. This is a time to approach top-tier firms to pivot to a high-growth industry. Just think of all those names you would love to have on your resume like that tech company you've been dreaming of working at. Write up a list and reach out to potential hiring managers. Use your LinkedIn to showcase the value you can bring to the table and demonstrate your knowledge of news and developments shaping the sector. Request for a conversation without asking for a job right away ' most things in life begin with one. A word of caution: Mind the number of companies you reach out to. You don't want the entire market to know you are exploring a job change. People in high-performing sectors can be small and highly connected. Be prepared that word will get around. If transitioning to another career means getting suitable training ' as a medical or legal professional for instance, go back to school. You may have been drifting for some years but that is alright. Most of us started out not knowing what we want to do with our lives. This pandemic is a chance to reset your career. FOR THOSE IN YOUR LATE 30S TO 40S: DEMONSTRATE VALUE If you are in your late 30s to 40s, you may be the sole breadwinner of the family, and have outstanding home and car loans. If so, this is no time to be adventurous. Your best strategy is to hang on to your job. Sometimes that means grinding your teeth and working really hard. This is not the time to focus on work-life balance issues, much as this is important to everyone. You should seek out additional responsibilities to entrench your contribution to the company. The more areas of responsibility you have, the more your boss will find it difficult to let you go. When the economy picks up, shouldering bigger roles also puts you in a better position to ask for a raise. If you have been cruising along in your job, now is the time to wake up and do something about it. Make your presence and accomplishments felt. Be sensitive and responsive to your boss' needs. This will not come easy seeing how most of us are working from home. Over-communicate if you need to. Make sure your supervisor knows you are just a WhatsApp away. FOR THOSE 50 AND ABOVE: GO FOR TRAINING, THINK ABOUT LIFE AFTER WORK If you are over 50, unless you have been actively managing your career and have been keeping up with training to ensure your skillsets are up-to-date, you should explore rebuilding your skills. The Government has put in place several skills conversion programmes through SkillsFuture Singapore and Workforce Singapore you can apply for. The Government has also incentivised employers in high growth sectors like ICT to hire older workers through the Jobs Growth Incentive from now until February 2021. Consider this the chapter 2 of your career. Unless the external environment changes dramatically again, you can probably work till your late-60s or 70s, assuming of course you do well at your job and remain healthy. If you are in your 60s, you might be looking forward to a change in pace and role 'with activities you enjoy in a post-corporate life phase. I would urge you to remain active physically and mentally for as long as you can. Get exercise and think about activities that may fill the spaces where work currently occupies ' whether volunteering or coaching. If you already know what you want to do post-retirement, great. If you don't, now is the time to sit down, ideally with a coach or friend, to map it out. I myself have a portfolio of 14 activities that gives me deep satisfaction and purpose I would like to engage in, in a life after work. I plan to continue with coaching, writing, facilitating of small group activities and active volunteering. We only have one life. While we are some time away from when borders can reopen safely and the costs make sense, travelling is high up on my list. I fondly recall my walk up to Bhutan's Tiger Nest monastery. PREPARING FOR A RETRENCHMENT All of these might not be enough to prepare you for the shock of being retrenched, even if you have been given a heads-up by your boss. In that scenario, my advice is to keep your emotions in check. The sudden loss of a routine, contact with colleagues and your work identity can be tough to grapple with. Apart from tying up loose ends, handing over to ensure your team and partners can continue without you, take time also to rethink your finances, what you want to do next and resist the urge to be a hermit. If you have followed expert advice of having at least six months' worth of savings, you should have enough financial buffer. Managing your career is an individual responsibility, with or without a pandemic. No one owes you a living, you have to own this. Paul Heng is founder and managing director of Next Career Consulting Group.

NO

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Commentary: Robinsons shuttered for good. Does Singapore have too much retail space?. If the article mentions that Esprit has defaulted recently, respond with 'AFTER'. If the article mentions that Esprit will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Esprit is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Esprit is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Esprit has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Esprit. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

SINGAPORE: It's been more than a month since Robinsons called it quits. Its stores at Raffles City and The Heeren are almost empty, as bargain hunters cleared out shelves of discounted products in recent weeks. For decades, this up-market departmental store has provided millions with good memories, as parents, with children in tow, shopped through a whole range of items from homeware, fashion, children's clothes, bed and linen, electronic items and luxury products. And as the holiday season draws close, nostalgia is particularly strong. Robinsons had been a go-to place for last-minute gift shopping during festive seasons. REFLECTING THE UPS AND DOWNS OF THE RETAIL INDUSTRY In so many ways, Robinsons' journey mirrors closely the up-and-down of the retail industry. During its heydays in the 1980s and 1990s, Robinsons' flagship store at Orchard Road was brimming with families, where its creative, lively window displays caught the attention of passers-by. Shoppers and tourists never missed a photo opportunity with the bright, interactive Christmas decorations of its shop frontage and the building facade of Centrepoint during the festive seasons. Competition was aplenty but there was enough business to go around. Peers like Oriental Emporium, Yaohan, Daimaru, Sogo and John Little boomed. But as Singapore prospered, with more iconic shopping malls added to the shopping district, and individual brands setting up their own stores, giving people the luxury of choice and novel, trendy options, department stores came under pressure. The departmental store business in Singapore has undergone several rounds of transformation, with many old names closing for good. This will not be the last, though few titans like Marks & Spencer, Isetan and Takashimaya remain. COVID-19 EXPOSED STRUCTURAL WEAKNESSES The latest disruption that accelerated Robinson's foreclosure is undoubtedly COVID-19. While the Government has cushioned the bulk of the impact by granting rental relief and more to eligible retailers through the passage of the COVID-19 Temporary Measures Act, close to 2,500 companies in the retail sector called it a day from April to October. These include home-grown, 37-year-old Sportslink as well as the Singapore operations of Esprit, Topshop/Topman, with many moving online. This was a trend that impacted a range of industries. Bookstores, like beloved Books Actually, were not spared. But retail has been acutely affected. From plunges in tourist arrivals to local consumption (particularly during the circuit breaker), COVID-19 brought retail to its knees. Average monthly retail sales, which hovered at S$3.7 billion pre-coronavirus, plummeted by at least 28 per cent from April to June. Departmental stores, apparel and footwear, were the two categories that suffered the biggest drops of 48 per cent and 44 per cent year-on-year on average respectively from January to September, the same time many fashion brands started thinking about closing down. But COVID-19 has helped other categories of shopping mall tenants, especially supermarkets, convenience stores, watches and jewellery, which saw a growth in sales. Supermarkets reported the strongest performance, at an average year-on-year revenue growth of 34 per cent during this period. So was this merely a short-term disruption? Will we see department stores bounce back once we return to normalcy? Or might it be that inherent structural weaknesses were at the heart of such? Is the department store outdated? Did Singapore just have too much retail space and the cull was only a matter of time? RETAIL DOESN'T TAKE UP THAT MUCH SPACE IN SINGAPORE The available gross private sector retail space as of 3Q of 2020 stands at 5.76 million sq m, according to the Urban Redevelopment Authority, with 40 per cent and 26 per cent concentrated in the central and city fringe areas respectively. The balance one-third, serving primarily residents in the heartlands, is distributed across Singapore. By international standards, benchmarked by the International Council of Shopping Centres (ICSC) and retail consultancy Cistri, the shopping centre floor space per capita in Singapore is estimated at 6.4 (2019), a quarter of the US number of 23.1. Compared to Hong Kong (10.1) and Kuala Lumpur (9.9), Singapore's shopping centre floor space does not seem excessive, though it is a higher number compared to mature countries like UK (4.6), Japan (4.5) and Germany (2.3). The available private sector space has also grown at a slow average quarterly rate of 0.4 per cent since 2011. New private retail spaces under construction and in the pipeline have also declined since 2014. But the next five years will see more retail spaces as Woodleigh Mall (expected TOP in 2022), Sengkang Grand Mall (expected TOP in 2023), and The Ryse Residences (expected TOP in 2024) will supply a combined gross retail space of approximately 56,000 sq m. Another 40,800 sq m of new retail spaces will come from refurbished projects, such as 112 Katong and Shaw Plaza at Balestier Road, scheduled to reopen in 2021, and IMall, a new retail development connected to the Marine Parade MRT station slated for completion in 2023. While average vacancy rates rose to above 11 per cent during the second and third quarters, our research shows inherent weakness in the retail sector, especially in strata-titled malls, since 2015, where the islandwide vacancy rate has hovered above 7.8 per cent. Yet Robinsons' outlets in The Heeren, Raffles City and Jem should have little problems with finding tenants given the popularity of their locations, assuming some reconfiguration. Already 85,000 sq ft of retail space in Jem will be reconfigured to house the new concept store of Ikea next year. Rental prices have also been coming down for the past five years. Rentals of private retail spaces in the central and fringe area declined at an average quarter-on-quarter rate of 1 per cent since 2015. Meanwhile, private retail space prices in the central area declined even more at an average quarter-on-quarter rate of 1.2 per cent. This figure was 0.3 per cent for the city fringe area. E-COMMERCE ISN'T THE BAD GUY If not too much retail space, might e-commerce have been the bad guy that stole consumers during these coronavirus months where more people stayed home? After all, the high-profile rise of e-commerce portals, such as Lazada, Shopee and others have significantly influenced shopping behaviour and preferences of consumers for some time. Coupled with the wholesale migration of shoppers online during the circuit breaker months, consumer preferences might have shifted towards online shopping for good. About 6.9 per cent of all purchases were made online in September 2019. This number surged to 11.2 per cent (or S$355.7 million) in September 2020, with telecommunications equipment, furniture and household equipment leading sales during the circuit breaker. This was the same story with F&B, as online sales surged to 44 per cent of total sales in May. We have found, however, that the overall changes in consumer behaviour have been more nuanced. In the past, consumers searched online to find product-related information, but completed purchases at a physical store given how long fulfilment of an online purchase took. But the gradual improvements in supply chain management of e-commerce operators resulting in faster delivery times has triggered a shift. Consumers now find out about products from physical stores and make their purchases on online platforms with the most competitive deals. COVID-19 has not only hastened but has also shaken up the substitution effects between offline and online sales. In this scenario, however, there is a role for brick-and-mortar stores. Cistri's survey in July showed 66 per cent of shoppers expect online expenditures post-COVID-19 to remain roughly the same. Those likely to spend more online are male, between 25 and 39, and in the low or high income groups (as opposed to the middle-income group). HOW RELEVANT ARE DEPARTMENT STORES? Department stores in Singapore, such as Takashimaya, Tangs, Isetan and BHG, have adopted strategies to distinguish themselves from other online operators that compete mostly on prices. Isetan and Takashimaya have carved a niche in providing Japanese food offerings in their supermarket, to draw shoppers where touch, smell and taste are experiences that cannot be replicated digitally. They also have a strong emphasis on the mall's place-making efforts, where they organise ad hoc events from Japanese food fairs to routine festive sales such as Chinese New Year, Christmas and Mid-Autumn mooncake fairs to form strong associations with shoppers when those periods come around. While crowd-pulling events are out of the question if they risk flouting safe distancing rules, perhaps the solution lies in how department stores can create attractive digital experiences that allow consumers to browse online and try offline, where the chase is less for footfall per se and more for convenience, mindshare and stickiness. Leaders in this field have proven omni-channel strategies. Alibaba's Hema Xiansheng supermarket allows online shoppers to order fresh gourmet seafood, have it cooked and ready to be collected piping hot from a physical store, along with their groceries. Similarly, IKEA's store concept, which offers new home decoration ideas to customers, inspires and attracts homeowners and allows IKEA to cross-sell products. NORDSTROM, NIKE AND ADIDAS LEAD THE WAY Physical retail space really needs to be better rethought. Nordstrom in the US, upheld as a shining example of a retail giant's digital transformation, has created concept stores that resonate with shoppers, while strengthening its digital footprint. Customers can buy products directly after viewing them on Instagram. They can also pick up online orders at merchandise-free Nordstrom Local Stores, which offer alteration, styling, gift-wrapping and other lifestyle services. Since testing the concept in Los Angeles, Nordstrom has pushed into New York with two Local Stores. Nordstrom's pick-up orders doubled in the fourth quarter of 2019, comprising half of all of its e-commerce full-price sales. Nordstrom is also disintermediating its offerings and has opened a store targeting men in New York City and another for women only in 2019. Customers can also find slow-moving, off-season and discounted products at its off-price Nordstrom Rack stores, which lease smaller spaces and is differentiated from the full-price main brand. These act as outlet spaces that extend sale seasons beyond their traditional periods. Similarly, sports brands like Nike and Adidas have outlet stores in Changi City Point where products are sold at cheaper prices and sales are more frequent, giving shoppers a reason to visit and allowing retailers to clear stocks faster, in time for the next season's line-up. With stores designed to allow people to try out discounted products comfortably and service staff with strong product knowledge, the good experience can entice bargain hunters to return. DO LANDLORDS HAVE THE APPETITE FOR INNOVATIVE NEW RENTAL MODELS? But how much retailers can transform is also a function of whether landlords have the appetite to embrace and push for such omni-channel approaches to shopping. We would urge them to help tenants find new ways to increase sales, as future retail rental revenue will rely heavily on whether retail can find a new way to bring people back to physical stores. Perhaps for that reason, CapitaLand, the largest landlord of retail malls, has stepped up to create e-commerce platforms to drive online sales for their tenants. Launched in June, their retail and food e-commerce platform eCapitaMall and Capita3Eats extends reach for their tenants to more than 1 million CapitaStar members in Singapore. Frasers Property Retail is also targeting to launch an e-commerce site for tenants by the end of this year. Landlords are investing in ways to help their tenants to increase sales. We would also encourage landlords to consider rental models that incentivise retail to go digital and orientate rents towards an omni-channel model. UK retail landlord Hammerson recently introduced a new leasing structure, based on flexible terms. They rebased rents on an index reflecting broader economic conditions (co-sharing these risks) and allowed tenants to switch to a turnover-based lease if they included omni-channel metrics that consider online sales. The lines between online and physical retail stores have been blurred. When the COVID-19 dust settles, where and how consumers shop might come into sharper focus. But what is clear is that if malls, department stores and retailers fail to lure back shoppers who have gotten used to buying everything online from giant e-commerce sites, and arrest dwindling footfall, they risk following the fate of Robinson's. Listen also to one of the authors discuss the outlook for the Singapore residential market and why it seems to be holding up exceptionally well this COVID-19 recession: Professor Sing Tien Foo is Director at the Institute of Real Estate and Urban Studies (IREUS) and Head of Department of Real Estate, National University of Singapore. Lau Li Min is Research Assistant at the same institute. The views and opinions expressed herein are those of the authors and do not represent the views and opinions of the National University of Singapore or any of its subsidiaries or affiliates.

NO

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Malaysia Pacific sells Wisma MPL for RM189mil. If the article mentions that Malaysia Pacific Corp Bhd has defaulted recently, respond with 'AFTER'. If the article mentions that Malaysia Pacific Corp Bhd will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Malaysia Pacific Corp Bhd is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Malaysia Pacific Corp Bhd is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Malaysia Pacific Corp Bhd has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Malaysia Pacific Corp Bhd. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

KUALA LUMPUR: Malaysia Pacific Corp Bhd (MPC) has sold Wisma MPL on Jalan Raja Chulan here for RM189 million to Asia New Venture Capital Holdings Sdn Bhd. The companies signed a sale and purchase agreement on the disposal today. This would allow it to settle its debts with RHB Bank Bhd, said MPC in a filing to Bursa Malaysia. MPC owes some RM148.54 million to RHB Bank as a redemption sum for the land. Both MPC and RHB have been involved in a lengthy legal dispute after thebank had served it with a notice of default for revolving credit and bank overdraft facilities in March 2015. 'The proposed disposal will enable us to use the proceeds to, amongst others, repay our defaulted borrowings from RHB,' the group said, adding that it planned to complete the repayment within three months. MPC will also repay its creditors some RM19.92 million and incur expenses of RM18.14 million. The disposal price was arrived at on a 'willing-buyer willing seller' basis after taking into consideration the third auction by RHB Bank. The reserved price was based on the forced sale valueof RM184 million, the group said. 'The third auction was called off on November 28, 2018,' it added. MPC said based on a valuation report was prepared by JB Jurunilai Bersekutu dated August 28 using the investment and comparison methods of valuation, the market value of Wisma MPL was RM252 million.

NO

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Water under the bridge for MPCorp, after settlement with Amanahraya. If the article mentions that Malaysia Pacific Corp has defaulted recently, respond with 'AFTER'. If the article mentions that Malaysia Pacific Corp will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Malaysia Pacific Corp is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Malaysia Pacific Corp is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Malaysia Pacific Corp has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Malaysia Pacific Corp. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

Practice Note 17 (PN17) company Malaysia Pacific Corp (MPCorp) Bhd has squashed talks that it would be de-listed from the Main Market of Bursa Malaysia. Chief executive officer and executive director Charles Ch'ng Soon Sen said the company is finalising its regularisation plan for submission to the relevant authorities for approval. "In the last year, we have undertaken several deals to improve the financials of the company. Moving forward we are poised to be in a better position where we will be able to undertake property development projects on our own and expand the business of the company," he told NST Property. Last year MPCorp sold of Wisma MPL, the first shopping cum office complex, located in Jalan Raja Chulan, Kuala Lumpur, for RM189 million to Asia New Venture Capital Holdings Sdn Bhd. The sale was to settle its debts with RHB Bank Bhd, where it owed some RM148.54 million as a redemption sum for the land. MPCorp and its subsidiaries namely Oriental Pearl City Properties Sdn Bhd, Lakehill Resort Development Sdn Bhd and Taman Bandar Baru Masai Sdn Bhd are also disposing off 52.5 hectares (ha) of land in Pasir Gudang, Johor, as settlement of debt owing to Amanahraya Development Sdn Bhd amounting to RM115 million. Amanahraya and Oriental Pearl had a joint venture agreement (JVA) dated August 20, 2008, to develop LakeHill Resort City on several pieces of land measuring a total of about 256ha in Pasir Gudang. Both the parties would have profit-sharing arrangements under the JVA. The land is owned by Taman Masai. In the following years, there was a dispute between the two parties. Subsequently, on September 21, 2012, Amanahraya served Oriental Pearl with a writ of summons for the sum of RM113.17 million together with an interest rate of 7.2 per cent per annum until the date of full settlement. To resolve the dispute amicably, MPCorp, Oriental Pearl, Lakehill, Taman Masai, and Amanahraya entered into the 2019 Settlement Agreement (SA). The SA served to net off the amount due from MPCorp to Amanahraya via the transfer of the lands in Johor as a full and final settlement of all disputes and claims of any nature between the parties. The settlement sum of RM115 million is equivalent to the balance of the 2014 settlement sum which MPCorp had yet to pay to Amanahraya. At MPCorp's extraordinary general meeting held on May 22, 2020, shareholders approved the settlement sum. "The resolution was passed at the EGM. We are now completing the deal," said Ch'ng, who is the son of Datuk Bill Ch'ng and Datin Kong Yuk Chu, majority shareholders of MPCorp. "It's all water under the bridge now. After the settlement with Amanahraya, MPCorp will have minimum liabilities and we can move on," he said. As at June 30, 2019, MPCorp's current liabilities exceeded its current assets by RM120.5 million and the company recorded a deficit in its shareholders' equity of RM9.9 million. Focus on land development in Johor Ch'ng said the company will focus on developing its current land bank in Johor, where it will have remaining 80ha to 90ha after the settlement with Amanahraya. The developer has also two JV property projects with Bina Puri Properties Sdn Bhd and Taiwan-based Chun Fu Development Sdn Bhd. Its JV with Bina Puri is to build double-storey link houses (Seroja homes) in Taman Nusa Damai, Masai, worth RM270.88 million. Ch'ng said the project was currently about 51 per cent completed. Its JV with Chun Fu is to develop 16ha of land in Plentong. "The project is still in the planning stage. For phase 1, we are anticipating a gross development value of about RM350 million," he said. Ch'ng said the company is looking for investors to jointly develop some parcels of the remaining land in Pasir Gudang. "We are talking to several investors, including developers but there is nothing concrete yet. The market is slow and we expect sluggish property market conditions to continue until the end of this year because of the global Covid-19 pandemic. "We hope property buying activities to increase with the National Economic Recovery Plan (Penjana) incentives. The revived home-ownership campaign would certainly boost the sales of new residential properties," he said. On the year to date basis, MPCorp's revenue decreased by RM8.05 million to RM3.02 million as compared to the proceeding year's corresponding financial year period ended March 31, 2019, of RM11.07 million. The decrease in revenue for the current financial period was mainly due to loss of rental income upon completion of the disposal of investment property and slow construction progress, cancellation of SPA, and price rebate to the buyer in the property development segment. The group recorded a pre-tax loss for the current financial period of RM2.1 million as compared to a pre-tax loss in the preceding year's corresponding period ended 31 March 2019 of RM12.73 million. The decrease in loss was saving from bank interest waived after recognize the full settlement of the RHB bank loan account.

NO

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled ING, Maybank top creditors of distressed Singapore commodity firm Agritrade -document. If the article mentions that Agritrade International has defaulted recently, respond with 'AFTER'. If the article mentions that Agritrade International will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Agritrade International is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Agritrade International is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Agritrade International has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Agritrade International. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

SINGAPORE, March 2 (Reuters) - ING and Malayan Banking Bhd (Maybank) were the top creditors of Singapore commodity trader Agritrade International, which was last month placed under interim judicial management. Documents reviewed by Reuters showed Malaysia's Maybank tops the list of secured lenders to Agritrade with $118 million owed to it, with Dutch bank ING owed $100 million. The trading company has $1.55 billion in outstanding liabilities to dozens of creditors, including $983 million owed to secured lenders, an affidavit by Agritrade's chief executive officer Xinwei Ng dated Jan. 16, showed. A Maybank spokesman declined to comment on specific clients but said that it 'has a stringent provisioning policy in place and takes appropriate measures as and when required to manage the asset quality of our entire credit portfolio'. ING declined to comment. In February, ING said provisions for bad loans rose in its fourth quarter, due in part to what it said was a single provision for a fraud case at a customer in Asia. ING did not disclose the identity of the customer. French, Indian, Italian, Japanese, Chinese, the United Arab Emirates and Korean banks, along with 10 private funds are among Agritrade's other creditors, according to the list, which also included some global commodity traders. Agritrade said in the affidavit it ran into financial problems around 2018 amid a declining commodities market and its funding issues were compounded after many banks halted funding. 'This situation was exacerbated by the sudden withdrawal of numerous credit lines by several of the company's bank lenders,' Ng said, adding that the situation affected Agritrade's liquidity and its ability to fulfil its future commitments. Agritrade International is the parent company of Hong Kong-listed Agritrade Resources Ltd. The firm was placed under interim judicial management in February after the court dismissed an application for a debt moratorium. Consulting firm EY told Reuters that the Singapore court had appointed its partners Angela Ee and Aaron Loh as interim judicial managers of Agritrade International. Agritrade International said its primary assets are in the form of trade receivables and its shares in Agritrade Resources, according to the documents.

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Oil trader Hin Leong races to restructure billions in debt. If the article mentions that Agritrade has defaulted recently, respond with 'AFTER'. If the article mentions that Agritrade will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Agritrade is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Agritrade is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Agritrade has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Agritrade. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

HSBC, ABN Amro and Soci??t?? G??n??rale are among a group of banks owed almost $4bn by Hin Leong, the Singapore oil trader scrambling to restructure its finances as a brutal downturn hits energy markets. The privately owned company, which is controlled by self-made billionaire Lim Oon Kuin, entered talks with its lenders this week about a standstill agreement, said people with knowledge of the situation. It is also exploring a potential rescue deal with Chinese state-run oil company Sinopec, the people said. The plight of Hin Leong, one of Asia's biggest fuel traders, is being keenly followed by rival traders concerned about the willingness of banks to finance commodities in Singapore and beyond. The sector has been rocked by scandals over the past year, most recently the collapse of Singapore-based Agritrade, which left 20 banks facing losses running into the hundreds of millions of dollars. Noble Group, the commodity trader that almost blew up in an accounting and debt scandal before pushing through financial restructuring, was also listed in Singapore. 'This could have repercussions on the willingness of banks to finance commodities in Singapore especially smaller players that are likely to feel the pressure of curtailed bank lines.' said Jean-Fran??ois Lambert, a former trade finance banker who runs consultancy Lambert Commodities. Singapore is one of the world's biggest hubs for commodities trading. HSBC has the biggest exposure to Hin Leong at $600m, followed by ABN Amro at $300m, while Soci??t?? G??n??rale has lent the company $240m. In total, around two dozen banks are owed $3.85bn by the company. Hin Leong, HSBC, ABN and Soci??t?? G??n??rale declined to comment. Sinopec did not immediately respond to a request for comment. It is not clear what has caused Hin Leong's predicament but the coronavirus pandemic has led to an unprecedented collapse in fuel demand and hammered oil prices, which have more than halved since the beginning of the year. The downturn has tested to the limit the risk management skills of an industry that operates on razor-thin margins in highly competitive markets. Traders were first alerted to problems at Hin Leong when several lenders refused to issue new letters of credit, an important short-term financing tool for trading houses that act as a guarantee of payment to a seller. 'Everyone is shocked by this because this is a company that has been around 50 years, deemed trustworthy and always delivered,' said one banker. Hin Leong, which means 'prosperity' in Chinese, was founded in 1963 and has grown into one of the biggest suppliers of marine fuel in Asia. Its turnover was $14bn in 2012, according to the company. OK Lim, as the company's founder is better known in Singapore, started the business with a single truck supplying diesel to local fishermen. His net worth was recently put at $1.5bn by Forbes. He was born in Fujian province, China. Mr Lim's business empire includes Ocean Tankers, which claims to own more than 100 ships including 14 oil supertankers and is run by his son Evan Lim, and Universal Terminal, an oil storage joint venture with PetroChina Hin Leong is being advised by accountant PwC and law firm Rajah & Tann. Additional reported by Stefania Palma in Singapore and Nicholas Megaw in London

NO

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Hin Leong Trading files for bankruptcy protection. If the article mentions that Agritrade has defaulted recently, respond with 'AFTER'. If the article mentions that Agritrade will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Agritrade is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Agritrade is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Agritrade has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Agritrade. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

Hin Leong Trading, the oil trader founded by one of Singapore's richest men, has filed for bankruptcy protection as it seeks to restructure debts of almost $4bn. The privately owned company told its lenders on Friday it was planning to make an application under section 211(B) of the Singapore Companies Act, according to people with knowledge of the situation. If granted by the High Court in Singapore it would give Hin Leong a 30-day moratorium period to hammer out a restructuring agreement with almost two dozen banks. In a letter to its lenders, the company said the filing was necessary for its survival, adding there was a 'real threat of legal or insolvency proceedings being filed, or enforcement steps being taken, at any time'. 'HLT urgently and critically needs to use all its resources and management capacity to stabilise its management, business and operations as far as possible and to work with its creditors and advisers on the proposed debt restructuring,' the letter seen by the Financial Times said. Hin Leong said it was also prepared to explore the option of judicial management if any of its lenders opposed the bankruptcy protection filing. This would see an independent manager appointed by a court to run the company. 'We invite the Bank Lenders to express their views accordingly,' the letter concluded. Hin Leong declined to comment. The plight of Hin Leong, founded in 1963 by self-made Chinese tycoon Lim Oon Kuin, has sent shockwaves through the commodity trading industry. The company is one of the largest suppliers of bunker, or ship fuel, in Asia and an active participant in the market-on-close system, which is used by traders to set oil prices in the region. Hin Leong, which has debts of $3.85bn, started talks with its lenders this week about a standstill agreement but they were not able to reach an accord. As a result the company decided to seek protection from its creditors. HSBC is the bank with the biggest exposure to Hin Leong at $600m, followed by ABN Amro at $300m. Three Singaporean banks ' DBS Group, OCBC Bank and United Overseas Bank ' have exposure of $680m. The Monetary Authority of Singapore, the City state's de facto central bank, has been in touch with the banks on their exposures, people familiar with the situation said. It is not clear what caused Hin Leong's financing issues but they follow a spectacular collapse in oil prices, the slump in fuel demand caused by coronavirus and banks reducing their exposure to all but the biggest commodity traders. This follows a series of scandals over the past year, most recently the collapse of Singapore-based Agritrade, which left 20 banks facing losses running into the hundreds of millions of dollars. Traders were first alerted to problems at Hin Leong earlier this month when the company cancelled a number of contracts because it had not been able to get banks to issue letters of credit, a short-term financing tool for trading houses that act as a guarantee of payment to a seller. Hin Leong, which means 'prosperity' in Chinese, was founded in 1963 and has grown into one of the biggest suppliers of marine fuel in Asia. Its turnover was $14bn in 2012, according to the company. OK Lim, as the company's founder is better known in Singapore, started the business with a single truck supplying diesel to local fishermen. His net worth was recently put at $1.5bn by Forbes. He was born in Fujian province, China. Mr Lim's business empire also includes Ocean Tankers, which says it has more than 100 ships and is run by his son Evan Lim, and Universal Terminal, an oil storage joint venture with PetroChina. Ocean Tankers, which counts Hin Leong as a client, has also filed for bankruptcy protection, according to people with knowledge of the situation. The company declined to comment. Hin Leong is being advised by accountant PwC and law firm Rajah & Tann.

NO

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled HSBC seeks to remove management of ZenRock Trading. If the article mentions that Agritrade International has defaulted recently, respond with 'AFTER'. If the article mentions that Agritrade International will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Agritrade International is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Agritrade International is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Agritrade International has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Agritrade International. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

HSBC has taken steps to remove the management of Singapore-based ZenRock Commodities Trading, seeking to have the company put under judicial management in the latest blow to the city-state's natural resources sector. Investment banks have tightened credit lines and scrutiny of existing loans to commodities traders in response to the crash in global oil prices and the collapse of Hin Leong Trading, one of Asia's biggest fuel traders. Hin Leong is under judicial management after its founder Lim Oon Kuin revealed last month that $800m of losses had not been reflected in its financial statements and sought protection from creditors, who are owed almost $4bn. That sent other oil traders, including ZenRock, scrambling to reassure investors they could survive the historic oil price falls rocking energy markets. HSBC on Monday lodged an application in Singapore's High Court to have ZenRock placed under judicial management, according to a filing seen by the Financial Times. If approved by the court, an independent judicial manager would be appointed to run the business while a debt restructuring agreement is hammered out with its creditors. At least 10 banks have exposure to ZenRock, according to regulatory filings and people with knowledge of the situation. The person added that there were questions about some of the company's financial transactions. ZenRock did not immediately respond to a request for comment. HSBC declined to comment on its filing. Last month ZenRock, which describes itself as 'one of the fastest-growing independent commodity trading houses in the world', sought to reassure investors and distance itself from Hin Leong's woes. In a letter seen by the Financial Times, ZenRock said it had the 'ability and experience' to navigate 'profitably' the challenges facing the industry. Its revenue more than doubled to $6.1bn in 2018 from the previous year, according to filings in Singapore, while net income from continuing operations was $6.1m, up from $2.1m. The company's 2018 results were audited by Ernst & Young. Other banks with exposure to ZenRock include ING and Cr??dit Agricole, according to people familiar with the situation. ING declined to comment, while Cr??dit Agricole did not immediately respond to a request for comment. Citi, which also counts ZenRock as a client, declined to comment. Producers around the world have grappled with wild oil market swings in recent months, including a drop into negative for US prices with producers forced to pay buyers to take crude off their hands because of a lack of storage capacity. ZenRock was founded six years ago by Xie Chun, a former executive at Unipec, the Chinese oil trader owned by state-run Sinopec, and Tony Lin, an ex-Vitol executive. The crisis at the company follows a string of scandals and failures including the implosion of Hin Leong, the collapse of Agritrade International and the debt crisis at Noble Group. That has alarmed Singapore regulators, which have urged lenders not to pull back from the sector. This week several government agencies including the Monetary Authority of Singapore, the de facto central bank, met 15 big trade finance banks to discuss the fallout from Hin Leong's collapse. MAS could not immediately be reached for comment.

NO

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Commodity trading blow-ups dent Singapore?€?s reputation. If the article mentions that Agritrade International has defaulted recently, respond with 'AFTER'. If the article mentions that Agritrade International will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Agritrade International is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Agritrade International is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Agritrade International has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Agritrade International. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

A series of scandals in Singapore, including a startling admission of financial irregularities by one of the country's most successful businessmen, is threatening the city-state's ambition to become the world's leading commodity trading hub. The blow-ups in close succession of Hin Leong Trading ' whose billionaire founder Lim Oon Kuin confessed to hiding $800m of losses ' ZenRock Commodities Trading and Agritrade International have raised serious questions about the strength of Singapore's regulatory framework and oversight of trading houses. The corporate collapses have also highlighted structural risks such as the lack of transparency underpinning the global commodities trade, which remains critical to the small, open economy of Singapore. Critics say the country's rules, monitoring and enforcement of many of the privately owned companies involved in the sector are weak. Driven by an overriding desire to be a business-friendly destination, they say Singapore has been hesitant to introduce stricter rules that might discourage companies from incorporating in the city, which competes directly with London, Geneva and Houston. 'I believe there are legitimate concerns about whether resources for regulatory enforcement have kept pace and whether our regulators are too conservative,' said Mak Yuen Teen, an accounting professor at the National University of Singapore. 'My sense is that regulators here are less willing to test the law and will only prosecute in 'sure win' situations.' Others take a different view, arguing that no amount of regulation could have stopped the failures, particularly any involving financial impropriety. Commodity trading blow ups are hardly unique to Singapore, they add, pointing to the recent debt crisis at Dubai-based Phoenix Commodities. 'The fact that Singapore has been the epicentre of [these collapses] reflects the fact that it is the epicentre of trading in the region,' said Craig Pirrong, a finance professor at the University of Houston and author of reports on commodity trading. 'It's not as if Singapore doesn't have laws against fraud and isn't capable of rigorous enforcement.' Singapore's location straddling the shipping lanes that connect China with global markets has helped turn the tiny city-state into one of the world's biggest commodity hubs ' and a natural home for traders, which the country has courted with low corporate tax rates and other benefits. All of the world's major oil traders, including Trafigura, Glencore, Vitol and Mercuria, have offices in Singapore. They rub shoulders with the trading arms of oil majors BP and Shell and a group of aggressive local players that have carved out strong positions in markets such as bunkering, or marine fuel. It is these local traders that have struggled in 2020. 'We have had a crazy couple of months in the oil market,' said Christophe Salmon, chief financial officer at Trafigura. 'When we see such price movements it is also always the companies that either speculate or lack proper risk management frameworks that get into trouble. That's what we have been seeing in south-east Asia.' Indeed, it was the crash in oil prices caused by the Saudi-Russia price war and the coronavirus epidemic that triggered the liquidity crunches at Hin Leong and ZenRock Commodities. This, in turn, led to the discovery or admission of financial irregularities. In the case of Hin Leong, it was hiding losses from trading in futures markets and selling off oil inventories that had been pledged as collateral for loans, according to legal filings in Singapore. For ZenRock, it was using the same cargo of oil to obtain loans from several banks, according to claims made by HSBC, one of its lenders, in court documents. Both companies are now being run by independent third parties that are trying to hammer out a debt restructuring agreement with their lenders. They are also under investigation by the police. Hin Leong and ZenRock did not respond to calls and emails seeking comment. ZenRock has blamed its financial difficulties on the steep decline in crude oil prices and a tightening credit market 'exacerbated' by banks' increased caution, according to local media reports. Prof Mak says the failure to hold companies and directors to account for their conduct has contributed to the string of collapses. 'We certainly do not have much of a record in putting directors who break laws into jail or even disqualifying them,' he said. In 2018, the white collar crime unit of the Singapore police launched an investigation into suspected 'false and misleading statements' made at Noble Group, the commodity trader that came close to collapse in a debt and accounting crisis. To date, no charges have been made. Noble, which was listed in Singapore, has always defended its accounting. Allegations about the company accounts first surfaced in 2015. Enterprise Singapore, the government agency that promotes trade in the city state, said commodities trading was regulated under the Commodity Trading Act and the Securities and Futures Act. 'Trading companies that are suspected to have contravened Singapore laws may be investigated and dealt with in accordance with our laws,' it said. 'Failure to comply with [commodities trading] regulations may result in an offence punishable by fine or imprisonment or both.' Bankers also note that Hin Leong did not have to file annual results even though its revenues exceeded $20bn in 2019, according to court documents. This is because of its classification as an 'exempt private company', defined as a business with fewer than 20 shareholders and no corporate investors. 'How can a $20bn revenue company not be a public interest entity?' asks Prof Mak. Hin Leong's creditors, which include HSBC, ABC and Soci??t?? G??n??rale as well as local banks DBS, OCBC and UOB, are owed almost $4bn. Singapore's Accounting and Corporate Regulatory Authority said 'most private companies adopt the accounting standards that are similar to those prescribed for listed companies and the international accounting standards . . . [they] are also required to make disclosures that are comparable to listed companies in Singapore, as well as companies incorporated overseas'. The recent failures in Singapore have also shone a light on broader issues with commodity trading. These include aggressive lending practices and archaic paper-based systems that are vulnerable to abuse and forgery. Baldev Bhinder, managing director of Singapore-based law firm Blackstone and Gold, said the people who vilified the city-state for the recent collapses should also look at the part played by the banking sector. 'The spotlight is on the traders for some sharp and shoddy practices but it is also on the banks for some better lending practices,' said Mr Bhinder. He added: 'I am always struck as to how companies of all shapes and sizes sometimes get access to a startling amount of financing.' Commodity trading is a capital-intensive business ' it cost tens of millions of dollars to fill up an oil tanker ' and fees from lending to local players such as Hin Leong and ZenRock can be up to two and half times higher than from deals with sector leaders such as Vitol and Trafigura, according to industry executives. A veteran industry banker says he was stunned to discover Agritrade International, a relatively small trader that collapsed in February, had been granted $1.54bn of credit from 26 different lenders. 'This is a really staggering number,' he said, adding that he hoped regulators in Singapore would set up a credit registry so that banks could check on banking facilities granted to commodity traders by other lenders. The Monetary Authority of Singapore, the country's financial regulator, said it promoted 'transparency and fair-dealing by banks in relation to their customers and counterparties'. 'In their credit risk management, banks are expected to apply judicious credit assessments on individual borrowers and not rely on broad-based sector de-risking,' it said. For Trafigura's Mr Salmon, the problems in Singapore also highlighted the need for global electronic platforms to process documents that underpinned commodity trading. The buying and selling of raw materials is still largely a paper-based process with banks relying on bills of lading or warehouse receipts as title documents and security for financing goods. 'One of the ways to mitigate fraud is through tighter systems. A comprehensive blockchain solution could take years but electronic bills of lading could be an important step forward,' said Mr Salmon. Whatever solutions are chosen, bankers and industry executives say the pressure is on the authorities to show they can handle the restructuring or liquidation of the collapsed traders and take firm measures to prevent it happening again. Otherwise Singapore may fail to realise its ambitions to be the world's premier commodity trading hub. 'I have no doubt that Singapore will make an example (or examples) pour encourager les autres,' said Prof Pirrong. 'It has a reputation for meting out pretty rough penalties for a variety of crimes.' This article was amended to reflect the fact that allegations about Noble Group's accounts first surfaced in 2015, not 2014.

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Commodity traders need to embrace a digital future. If the article mentions that Agritrade International has defaulted recently, respond with 'AFTER'. If the article mentions that Agritrade International will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Agritrade International is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Agritrade International is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Agritrade International has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Agritrade International. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

The collapse of Agritrade International, Hin Leong Trading, Phoenix Commodities or ZenRock Commodites Trading ' commodity trading firms seem to be failing with some regularity over recent months. Superficially, commodity traders share some features of the lightly regulated investment banks that existed before the 2008 financial crisis. They have leveraged balance sheets; they extend credit to suppliers; and they transact in derivatives executed on regulated exchanges. Most independent trading houses are private, with some that have grown very large over the past two decades by moving, storing and transforming ever increasing volumes of crude oil, soyabeans or liquefied natural gas. With each new failure, the calls have been growing louder for financial regulators to step in and impose capital adequacy rules upon them. What is missing from the debate is the repeated fraud that has been behind their problems. Even if financial authorities did step in today, the lack of digitisation of the underlying markets is likely to hamper effective regulation. What commodity trading needs is a digital platform that tracks the entire logistics lifecycle of a transaction which validates invoices against the physical products. Fraud can take many forms in commodity trading. Hedging of physical positions with derivatives can be pushed out of balance and turned speculative; inventories can be pledged multiple times to financiers by forging warehouse receipts; receivables can be manufactured. It is usually the trade finance banks that are left holding the bag. Unlike derivatives transactions, which are settled through clearing houses, the physical commodity market lacks a digital confirmation facility where the pricing, payment and delivery terms booked by the buyer and the seller can be reconciled ' automatically and in real time. Historically, traders were very reluctant to send their transactions to a centralised database as they contain the most commercially sensitive details of their business dealings. With the advent of blockchain technology, the preservation of privacy has become algorithmically guaranteed: commercial data is encrypted end to end, and the platform operator cannot hope to access ' and resell ' the intelligence gathered from the observation of commodity flows. The fraud risk assumed by trade finance banks would be considerably lowered if the whole industry made a systematic use of digital confirmation facilities: banks would be able to check with their clients' counterparties the existence and details of transactions they are asked to finance ' a welcome departure from the current practice of requesting letters of credit by email with documents not authenticated by a third party. By the same token, invoice fraud in commodity trading is made possible by the weak link between the actual value of the invoice and the transaction that generated that invoice. In real life, loaded quantities differ from agreed quantities; qualities vary; and ships are late. Frauds associated with loans collateralised by inventories have been more common than they should. In 2014, Dezheng Resources was accused, and ultimately convicted, of pledging to trade finance banks' warehouse receipts representing metal stocks at the Chinese port of Qingdao multiple times; the losses to the lenders totalled more than $3bn. More recently, the founder of Hin Leong admitted to selling inventories pledged to bankers to raise cash and meet margin calls. One would expect a fraud involving inventories to be difficult to carry out in 2020: the terminal operators ' which effectively act as custodians for the physical goods ' could easily report stock levels held by their clients directly to the banks on a digital platform and certify their presence. But in commodity trading, traders self-report to the lenders via email. In future, one will expect this separation of duties to be enforced more thoroughly; and when the terminals are operated by the traders themselves, the lenders will probably use the considerable arsenal of cargo tracking now available to carefully monitor the movement of ships and reconcile them with the stock levels submitted by their clients. Like modern commodity analysts, the trade finance bankers of the future are probably going to be python coders. There is no doubt that the commodity trading industry is highly sophisticated and generally well managed. In an environment where the visibility of trade flows has been enhanced by satellite technology and big data, it relies heavily on large volumes of trade finance loans to operate profitably. If they don't want the party to stop, it is high time that the better run traders and their bankers start emulating their financial brethren and embrace the use of digital platforms. Etienne Amic is the chief executive of VAKT Global, a blockchain-based trading platform The Commodities Note is an online commentary on the industry from the Financial Times

NO

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Credit Suisse Review of Funds Prompted by SoftBank?€?s Multiple Roles. If the article mentions that Agritrade Resources has defaulted recently, respond with 'AFTER'. If the article mentions that Agritrade Resources will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Agritrade Resources is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Agritrade Resources is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Agritrade Resources has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Agritrade Resources. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

LONDON'Executives at Credit Suisse AG CS -1.49% are reviewing several of the bank's funds after becoming concerned about the multiple roles played by Japanese conglomerate SoftBank Group Corp. 9984 -0.06% , according to people familiar with the matter. Four Credit Suisse funds have $7.5 billion in assets in total and are sold to institutional investors and wealthy families as safe, short-term investments. They hold securities backed by loans made to companies to allow them to pay their suppliers more quickly. SoftBank plays three roles in the Credit Suisse funds: it is invested in the funds; it is invested in the company whose loans are held by the funds; and the funds own securities backed by loans made to other companies that SoftBank has invested in. The review was launched after senior executives at the bank became concerned about SoftBank's roles in the funds, one of the people familiar with the matter said. But it is wide-ranging, and includes other aspects of the funds not related to SoftBank. The company tying this together is Greensill Capital, which offers supply-chain financing to companies, a form of short-term cash that lets them pay their bills more quickly. Greensill, founded in 2011 by former Citigroup Inc. banker Lex Greensill, counts former U.K. Prime Minister David Cameron as an adviser. It is the sole supplier of the supply chain finance deals that go into the Credit Suisse funds. A Credit Suisse spokesman pointed to a statement he made earlier this week confirming the review. A Greensill spokesman said the firm isn't involved with Credit Suisse's internal matters and that it has a strong relationship with the bank. A SoftBank spokeswoman declined to comment. David Erickson, a senior fellow in finance at the University of Pennsylvania's Wharton School, said there should be guardrails to protect investors from potential conflicts of interest, such as disclosures about SoftBank's role as an investor in the fund and its relationship to Greensill and companies that the fund finances. Major financial-market and trading news. In essence, SoftBank serves as both a lender and borrower in the transactions. The fund documents reviewed by The Wall Street Journal don't disclose SoftBank's connection to Greensill or to the companies receiving financing, though there is no requirement to make such a disclosure. Last year, the Vision Fund made a nearly $1.5 billion investment in Greensill through two tranches that valued the company at $3.5 billion. SoftBank currently has a 9.9% equity stake in the company, according to a document viewed by The Wall Street Journal and people familiar with the investment. The rest of its stake was structured as a convertible bond, because SoftBank would have needed approval for a larger equity stake from regulators in Germany where Greensill owns a bank. The SoftBank relationship with Credit Suisse deepened in recent months as one of the funds bought securities backed by loans made to other Vision Fund portfolio companies. Four such companies were among the top 10 recipients of financing from the fund, receiving about $750 million in aggregate as of March 31, according to a fund document. SoftBank was struggling even before the coronavirus slowdown, with several of its companies'including office-space provider WeWork'falling in value. Most of the company's investments are in money-losing young companies in fast-growing industries. The four Vision Fund companies are auto-financing company Fair Financial Corp.; Indian hotel chain Oyo Hotels & Homes; glass manufacturer View Inc.; and Chinese online car-trading platform Chehaoduo Group. Fair's chief executive stepped down in October following layoffs at the company. Oyo announced thousands of layoffs in January and its chief executive in April said its 'balance sheet runway has come under severe stress' due to the pandemic. SoftBank also injected $500 million into the Credit Suisse funds, according to the person familiar with the matter. It isn't clear when the investment was made. The Credit Suisse funds boomed last year, more than quadrupling assets under management to more than $9 billion from about $2 billion as clients including corporate treasurers, pension funds and family offices poured in money. This year the funds were hit by a wave of redemptions amid the economic turmoil, though flows have stabilized in recent weeks. The Credit Suisse funds resemble money-market funds that hold commercial paper, which are short-term loans to companies. The funds provide financing to blue-chip companies such as Kellogg Co. and General Mills Inc., as well as lesser-known firms, such as the SoftBank-backed startups. Investors view these funds as a safe way to boost returns. The risk is if investors fear they will lose money, they will sell out of the funds, potentially creating a liquidity squeeze similar to a run on a bank. Some clients of the funds that have each received tens of millions of dollars in financing have recently run into financial difficulties. They include NMC Health PLC, U.K.-based rent-to-own business BrightHouse Ltd. and Singapore commodities trader Agritrade Resources Ltd., which have all filed for restructuring. The Credit Suisse review is the second time in recent weeks that a SoftBank investment in a European financial firm has come under scrutiny. An affiliate of SoftBank, backed by SoftBank executives, helped arrange ???900 million ($1.01 billion) worth of convertible bonds in German fintech company Wirecard AG , a payments processor which filed for insolvency Thursday. The convertible bonds were later packaged up and resold by Credit Suisse to third-party investors. Marketing documents for the Credit Suisse funds say the bank's portfolio managers operating the fund don't 'exercise full discretionary investment management duties in respect' of the investments. People familiar with the funds say the portfolio managers can decide to reject the notes brokered by Greensill, though they have only done that on a few occasions. 'Properly underwritten trade credit is a steady, reliable and uncorrelated investment,' said an investment manager who invests in private credit including trade finance. But products whose main assets come through a single broker dealer, like in Greensill's case, are atypical, he said.

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Credit Suisse Funds Under Review Financed Nissan, Kellogg?€?and a Mogadishu Hotel Owner. If the article mentions that Agritrade International has defaulted recently, respond with 'AFTER'. If the article mentions that Agritrade International will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Agritrade International is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Agritrade International is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Agritrade International has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Agritrade International. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

LONDON'Greensill Capital, a SoftBank Group Corp. -backed financing firm, has raised billions of dollars by offering a way for investors to boost yields by helping companies manage cash flow. Greensill funds long-established companies such as cereal maker Kellogg Co. and Nissan Motor Co., but it also has a roster of lesser-known businesses that inject risk into its portfolio, according to fund documents distributed to investors. These include a private security firm that runs a hotel in Mogadishu, a coal miner that paid Greensill in stock instead of cash and several firms that got more in financing than they generated in revenue. Last week, Credit Suisse Group AG launched an internal review of four funds that the bank runs with Greensill. The funds have grown quickly and hold about $7.5 billion in assets in aggregate, up from $2 billion at the start of 2019. They invest in securities sourced from Greensill clients. Credit Suisse hasn't provided details about the review, which is continuing and is looking at the funds broadly. According to people familiar with the matter, it was prompted by concerns about the multilayered role of SoftBank. As well as holding a large stake in Greensill, the Japanese conglomerate invested $500 million in the funds. The less-established names that the funds finance include several of SoftBank's Vision Fund portfolio companies, including one to whom it provided unusually long payment terms. Credit Suisse and SoftBank declined to comment. A spokesman for Greensill said one of the funds is a 'high-income fund which comprises assets that are commensurate with that risk profile.' Greensill 'aims to make finance available to all businesses whether they are innovative startups or well-established Fortune 500 companies,' he said. Greensill, run by former Citigroup Inc. banker Lex Greensill, is part of a broader industry that provides short-term funding to pay companies' suppliers, also known as supply-chain financing. It counts former U.K. Prime Minister David Cameron as an adviser. Using this financing, companies effectively borrow money to pay their bills. Greensill pays the suppliers faster than they normally would be, but at a discount to the invoiced amount. The corporate clients, known as obligors, agree to pay back Greensill later. Those promises are packed up into securities that can be sold to investors. The Credit Suisse funds, which invest in securities primarily originated by Greensill, are pitched as alternatives to other relatively liquid diversified investments, such as money-market funds, which also lend short term to companies. The main Credit Suisse Greensill fund returned 3.35% in the year to June 1, compared with 1.8% in the same period for a large money-market fund run by JPMorgan Chase & Co. Assets in three of the funds are also protected by trade credit insurance, which covers potential defaults. Credit Suisse warns investors that there is no certainty that obligors or the insurance contracts pay in full or on time, according to a fund document. The most recently published detailed fund data for the two largest funds, from October 2019, show the vast majority of the funding has been tied to global businesses including Vodafone Group PLC, AstraZeneca PLC and General Mills Inc. But the funds have extended financing to lesser-known companies as well. One of Greensill's biggest clients was Bluestone Resources Inc., a U.S. coal-mining company, which received about $40 million in financing from one of the funds. Bluestone is owned by Jim Justice, the billionaire governor of West Virginia, who has settled a number of cases in recent years for alleged nonpayment of bills, according to court records. Supply-chain financing is almost always paid back with cash. Yet Bluestone repaid Greensill in a combination of cash and equity warrants, according to Bluestone. More than half of Greensill's profit for 2018 was tied up in $25 million worth of warrants that gave Greensill the right to own shares in the coal-mining company. It isn't clear whether Greensill received the warrants as payment for the Credit Suisse financing. Greensill also has other financing arrangements with clients. Bluestone's general counsel said the company has been working with Greensill since 2018 to improve its working-capital position. The portion of the fees it paid to Greensill that year in equity warrants 'were very soon after redeemed fully in cash,' he said, without specifying further. He said Bluestone 'continues to enjoy a strong relationship with Greensill.' A Greensill spokesman said the size of its business and the number of its customers have grown substantially since 2018, when the Bluestone warrants were paid. In recent months, the Credit Suisse funds' relationship with SoftBank has deepened. Financial News, which is owned by Wall Street Journal parent company Dow Jones, reported in April that four Vision Fund startups were among the top clients of one fund, receiving equivalent to about $800 million in financing. The four are auto-financing company Fair Financial Corp.; Indian hotel chain Oyo Hotels & Homes; glass manufacturer View Inc.; and Chinese online car-trading platform Chehaoduo Group, which operates Guazi. There is no indication any of them have failed to pay back Greensill. Fair Financial's chief executive stepped down in October after layoffs at the company and discussions about its future. The company allegedly broke an office lease and failed to pay its $500,000 security deposit, according to a recent lawsuit its landlord filed against it in California state court. A Fair spokeswoman declined to comment. Oyo announced thousands of layoffs in January and its chief executive in April said its 'balance sheet runway has come under severe stress' because of the coronavirus pandemic. Major financial-market and trading news. View was tied to more than $80 million in financing from the main Credit Suisse fund for a term of one year, according to a fund document. Several supply-chain-finance experts said a term of a year seemed unusually long. Most of the financing in the Credit Suisse fund was extended for around 90 days, and almost all of it is for periods of less than six months. A spokesperson for View didn't return requests for comment. A spokesperson for Chehaoduo didn't have an immediate comment. Other clients of the funds include a recycling facility in England; a two-year-old company that offers services to special-needs students; and another that provides modular buildings to hospitals. Those companies have just a few million dollars in annual revenue'less than what they have received in financing'according to filings. The Greensill spokesman said clients go through the 'same rigorous credit and risk approval process' and that the special-needs company and modular-building provider 'have had no trouble meeting their responsibilities.' RW Chelsea Holdings, the umbrella company for Cyprus and U.K.-based Chelsea Group, provides security-related services including crisis management for kidnap or extortion situations. It also runs a hotel in Mogadishu, Somalia. The Chelsea Group, founded by Richard Bethell, who served in the U.K. special forces and has run private military groups in conflict zones around the world, received about $11.6 million from the Credit Suisse funds as of October last year. The company didn't respond to requests for comment. Several companies financed by the funds have run into financial difficulties, including Singapore commodities trader Agritrade International (PTE) Ltd., which collapsed after allegations of fraud, and U.K.-based rent-to-own business Brighthouse Ltd., which filed for restructuring earlier this year. U.K.-listed NMC Health PLC was among the largest obligors in the main fund last year and received financing of at least $66 million as of October. The company recently filed for bankruptcy.

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Exclusive: Singapore's Agritrade has potential investors: source. If the article mentions that Agritrade Resources has defaulted recently, respond with 'AFTER'. If the article mentions that Agritrade Resources will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Agritrade Resources is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Agritrade Resources is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Agritrade Resources has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Agritrade Resources. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

SINGAPORE (Reuters) - London-based Nithia Capital Resources Advisors LLP is seeking to acquire troubled Singapore commodity trader Agritrade International Pte Ltd (AIPL) and its shares in its Hong Kong-listed subsidiary, according to a source familiar with the matter. AIPL, whose businesses span palm oil and coal, is undergoing a court-appointed restructuring after it collapsed earlier this year amid fraud allegations. It owes $1.55 billion, including $983 million to at least 20 banks. Nithia Capital, an alternative investment manager that specialises in turning around underperforming companies, has proposed the creation of a Special Purpose Vehicle (SPV) to invest in AIPL, according to the source, who declined to be named because the matter is confidential. A SPV ringfences the financial risk from buying assets because it is a separate company to its parent group. Agritrade's collapse is among a number of failures to hit the opaque world of commodities trading in Singapore, which is dominated by privately held firms. Ng Xinwei, the chief executive of Agritrade Resources, the Hong Kong-listed subsidiary, told Reuters in an email that 'negotiations are still ongoing in respect of the proposed deals' and declined to comment further. Nithia Capital did not respond to a request for comment. AIPL's court-appointed supervisor EY declined to comment. Agritrade Resources' supervisors and law firm did not respond to a request for comment. The vehicle, comprising a consortium of investors, would invest $65 million to acquire the entire share capital of AIPL, including its stake of about 55.7% in Agritrade Resources Ltd 1131.HK, according to the source. Up to $35 million in cash, or cash and convertible debentures in Agritrade Resources, would be allocated towards debt repayment, the source said. The rest would be loaned to Agritrade Resources to release security held over a power plant in India, repay debts and as working capital, the source added. Nithia Capital's conditions include that Ng, whose father founded AIPL, remain as director of Agritrade Resources to manage the company, which would in turn require him to work out arrangements with creditors to avoid bankruptcy, the source said. AIPL creditors Commerzbank CBKG.DE and Natixis CNATd.PA have filed bankruptcy orders against Ng. Under Singapore law, a person cannot be a company director while they are declared bankrupt. They can be reappointed as a director once they have been discharged from bankruptcy. Natixis and Commerzbank declined to comment. AIPL's creditors have accused the company, Ng and his father, Say Peck Ng, of fraud. They allege that they were duped into lending AIPL money because duplicate documents were used to obtain financing from multiple banks for the same shipments. Ng has previously said that he managed the day-to-day business of the company's Hong Kong-listed unit and his father was in charge of AIPL's trading business. He has said he supported efforts to fully uncover the extent, if any, of the alleged fraud and recover money owed. The elder Ng's employment was terminated on Feb. 1. He has not commented publicly on the allegations and Reuters was unable to reach him for comment. (This story corrects figure in second paragraph to $983 million from $983 billion)

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled CORRECTED-EXCLUSIVE-Singapore's Agritrade has potential investors-source. If the article mentions that Agritrade Resources has defaulted recently, respond with 'AFTER'. If the article mentions that Agritrade Resources will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Agritrade Resources is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Agritrade Resources is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Agritrade Resources has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Agritrade Resources. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

(Corrects figure in second paragraph to $983 million from $983 billion) * Nithia Capital proposes $65 mln in cash, bonds and loans-source * Ng Xinwei, CEO of Agritrade Resources, says talks are ongoing SINGAPORE, July 21 (Reuters) - London-based Nithia Capital Resources Advisors LLP is seeking to acquire troubled Singapore commodity trader Agritrade International Pte Ltd (AIPL) and its shares in its Hong Kong-listed subsidiary, according to a source familiar with the matter. AIPL, whose businesses span palm oil and coal, is undergoing a court-appointed restructuring after it collapsed earlier this year amid fraud allegations. It owes $1.55 billion, including $983 million to at least 20 banks. Nithia Capital, an alternative investment manager that specialises in turning around underperforming companies, has proposed the creation of a Special Purpose Vehicle (SPV) to invest in AIPL, according to the source, who declined to be named because the matter is confidential. A SPV ringfences the financial risk from buying assets because it is a separate company to its parent group. Agritrade's collapse is among a number of failures to hit the opaque world of commodities trading in Singapore, which is dominated by privately held firms. Ng Xinwei, the chief executive of Agritrade Resources, the Hong Kong-listed subsidiary, told Reuters in an email that 'negotiations are still ongoing in respect of the proposed deals' and declined to comment further. Nithia Capital did not respond to a request for comment. AIPL's court-appointed supervisor EY declined to comment. Agritrade Resources' supervisors and law firm did not respond to a request for comment. The vehicle, comprising a consortium of investors, would invest $65 million to acquire the entire share capital of AIPL, including its stake of about 55.7% in Agritrade Resources Ltd , according to the source. Up to $35 million in cash, or cash and convertible debentures in Agritrade Resources, would be allocated towards debt repayment, the source said. The rest would be loaned to Agritrade Resources to release security held over a power plant in India, repay debts and as working capital, the source added. Nithia Capital's conditions include that Ng, whose father founded AIPL, remain as director of Agritrade Resources to manage the company, which would in turn require him to work out arrangements with creditors to avoid bankruptcy, the source said. AIPL creditors Commerzbank and Natixis have filed bankruptcy orders against Ng. Under Singapore law, a person cannot be a company director while they are declared bankrupt. They can be reappointed as a director once they have been discharged from bankruptcy. Natixis and Commerzbank declined to comment. AIPL's creditors have accused the company, Ng and his father, Say Peck Ng, of fraud. They allege that they were duped into lending AIPL money because duplicate documents were used to obtain financing from multiple banks for the same shipments. Ng has previously said that he managed the day-to-day business of the company's Hong Kong-listed unit and his father was in charge of AIPL's trading business. He has said he supported efforts to fully uncover the extent, if any, of the alleged fraud and recover money owed.

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled SoftBank-Backed Greensill Looks to Raise Fresh Capital. If the article mentions that Agritrade International has defaulted recently, respond with 'AFTER'. If the article mentions that Agritrade International will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Agritrade International is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Agritrade International is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Agritrade International has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Agritrade International. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

LONDON' SoftBank Group Corp. 9984 -0.06% -backed Greensill Capital, a provider of specialty finance that helps companies manage cash, said it is asking investors for fresh capital to bolster its balance sheet. The move comes after several Greensill clients hit financial troubles, partner companies loosened ties with the firm and its banking arm came under scrutiny from regulators, according to filings and people familiar with the matter. A company spokesperson said the fundraising efforts emerge from a position of strength amid booming demand for its financing tools during the coronavirus pandemic, which help companies stretch payment terms with suppliers. The company pointed to an increase in assets in Greensill-linked investment funds and said its client base has grown during the pandemic. Founded in 2011 and advised by former U.K. Prime Minister David Cameron, closely held Greensill provides what is known as supply-chain financing. Greensill pays a company's suppliers faster than normal and at a discount to the invoiced amount. The company then repays Greensill later, allowing the company to conserve cash for a longer period. The supply-chain world took off after the 2008-09 financial crisis and is prized by some companies for creating financial flexibility. It has also attracted notice from the U.S. Securities and Exchange Commission and ratings firms for its potential to disguise a company's level of debt. Greensill, founded by Australian banker Lex Greensill, attracted backing from private-equity firm General Atlantic, which invested $250 million in 2018, and SoftBank's Vision Fund, which invested nearly $1.5 billion last year. Both companies declined to comment on the possible fundraising. Greensill aims to raise funds that could value the company at about $7 billion, the spokesperson said, double the valuation it achieved in a funding round in October 2019. It is early in the process, however, and valuation targets often fluctuate during rounds of discussions with investors. Greensill declined to say how much money it planned to raise. The company provided $143 billion of financing to companies in 2019, according to its website. While Greensill says business is strong, several companies that use Greensill's financing have run into difficulties. Singapore commodities trader Agritrade International (PTE) Ltd. and U.K.-listed NMC Health PLC both collapsed. U.K.-based rent-to-own business Brighthouse Ltd. filed for restructuring earlier this year. A Greensill spokesperson said credit insurance was in place for each of these companies. Meanwhile, German banking regulator BaFin and the Association of German Banks, an industry group, are probing Greensill Bank, a German lender owned by Greensill, according to a person familiar with the matter. Authorities are concerned about the bank's exposure to a single client: U.K.-based steel magnate Sanjeev Gupta. Mr. Gupta is a former Greensill shareholder who heads the GFG Alliance group of companies. A report from Scope Ratings last year said that about two-thirds of the bank's loan book was linked to Mr. Gupta's businesses. The Greensill spokesperson said the company has regular dialogue with German regulators, and said the bank's exposure to Mr. Gupta's companies is significantly lower now than at the time the report was released. Three firms that do business with Greensill or backstop its deals have recently scaled back their relationships, according to people familiar with the matter. Euler Hermes Group SA was one of Greensill's biggest providers of trade credit insurance on its deals. During recent renewal negotiations, Euler proposed to raise the excess, similar to a deductible, on Greensill's policy, according to people familiar with the matter. This would reduce the amount Greensill would receive in the event of a claim. Greensill, which had filed one claim in the last three years on the policy, rejected the terms and opted to replace Euler with other insurers, a Greensill spokesperson said, declining to name them. The claim was related to NMC, according to a person familiar with the claim. Greensill packages supply-chain financing deals into investible products. Some of those products, which are akin to bonds, sit in a nearly $6 billion Credit Suisse Group AG-managed fund. The fund is marketed to investors as a secure source of income protected by trade credit insurance. Euler was one of the biggest insurance providers to the fund, according to a recent Credit Suisse letter sent to fund investors viewed by The Wall Street Journal. Spokespeople for Credit Suisse and Greensill said the fund is fully insured. Earlier this year, Credit Suisse investigated four multibillion-dollar funds it runs with Greensill. Executives at the Swiss bank were concerned about potential conflicts of interest after SoftBank invested $700 million into one of the funds, while the fund also made loans to other Vision Fund companies. SoftBank ultimately redeemed its stake and the bank said it would take steps to protect investors. Credit Suisse is advising Greensill on the current fundraising plans, said a person familiar with the matter. Italian-banking giant UniCredit SpA decided in recent months not to participate in any new deals underpinned by assets sourced by Greensill, according to people familiar with the bank's decision. Banks often share the risk on supply-chain finance deals, which can be syndicated like loans. UniCredit became concerned about recent media coverage of Greensill's business practices in recent months, one of the people said. A Greensill spokesperson said it values its continuing relationship with UniCredit and that it works with dozens of banks globally, including several that it has added this year. Taulia Inc. provides a technology platform for processing invoices, a crucial cog in the supply-chain finance industry. Last December, Taulia let expire an exclusive relationship it had with Greensill to finance transactions. Taulia's clients became concerned about Greensill's media coverage and asked for non-Greensill financing options, according to people familiar with the companies' relationship. Taulia added JPMorgan Chase & Co., UniCredit and others to the platform, though it still does business with Greensill. A Greensill spokesperson said it continues to have a relationship with Taulia and that it shares a number of clients.

NO

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Sun goes down on Singapore's first solar power firm Sun Electric. If the article mentions that Agritrade International has defaulted recently, respond with 'AFTER'. If the article mentions that Agritrade International will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Agritrade International is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Agritrade International is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Agritrade International has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Agritrade International. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

Singapore THE sun has set on Singapore's first licensed solar energy retailer Sun Electric Power (SEP). The electricity retailer for mid-size and large businesses is under liquidation after commodity house RCMA Asia won the bid in court to wind up the firm in September, The Business Times has learnt. (see amendment note) RCMA pushed to wind up the firm on the basis that SEP was unable to pay some S$7.5 million, which mostly entailed "incentive payments" for assuming SEP's market making role in the electricity futures market, as it was cash flow and balance sheet insolvent, according to court documents. SEP has filed an appeal against the court order and BT understands that the court granted a conditional stay to SEP at a hearing last week. A search on the Accounting and Corporate Regulatory Authority (Acra) indicated the company's status as "in liquidation". The imminent collapse of SEP, once deemed an up-and-coming "clean-tech" solar energy company, is the culmination of a winding and protracted legal battle that began in February 2018 when RCMA launched a legal action against the firm to claim the monies owed. Court documents reveal that SEP has a S$1 million counterclaim against RCMA, which is a unit of global commodity house RCMA Group, parent company of iSwitch. iSwitch is one of Singapore's 12 electricity retailers and, at 14 per cent as at March 2020, commands the third-largest market share under Singapore's liberalisation of the power sector that began two years ago and went full throttle nationwide in May 2019. According to the Energy Market Authority's (EMA) website, 46 per cent and 43 per cent of household and business accounts respectively have switched out of SP Services - the incumbent - to a retailer, as at end-March. While SEP participated in the April 2018's soft launch of the Open Electricity Market (OEM) in Jurong, it had not been part of the nationwide agenda to open up the sector. When contacted by BT, the EMA said that SEP had "only contracted household and small business consumers during that period" and that it currently has fewer than 20 household and business consumers. The industry regulator reiterated that there are consumer safeguards should a retailer exit the retail electricity market and hence, consumers' electricity supply will not be disrupted. "...affected households and small businesses with an AMC (average monthly consumption) of less than 4MWh (megawatt-hour) will be transferred to SP Group to buy electricity at the regulated tariff rate. They can choose to switch to a new retailer of their choice thereafter," the spokesperson elaborated. SEP's struggles are well known in Singapore's oft-construed small and crowded electricity sector. The solar company is part of the Sun Electric Group that was founded and is led by Canadian and Singapore resident Matthew Peloso. In September, Mr Peloso was held in contempt of court - with penalties - for breaching an injunction order after he withdrew funds from SEP's bank account to extend a loan to a related entity. When contacted by BT, Mr Peloso said: "The company is strong, and has many customers. The Sun Electric Power Pte Ltd company has applied and obtained the stay and the winding up is under appeal. It can continue to grow." The group as well as Mr Peloso have been dogged by claims and contractual disputes as far back as 2016. Last year, the court dismissed SEP's bid to place the firm under interim judicial management and judicial management on the basis that such a route was unlikely to better realise SEP's assets versus a winding up. Then, in December 2019, Agritrade International and private equity firm Hector Capital announced that they acquired a 51 per cent stake in SEP's parent Sun Electric for an undisclosed sum. According to reports, Agritrade, a Singapore commodity trader that was wound up this year after it defaulted on loans and was hit by fraud allegations, was already facing a cash crunch around the time of the SEP investment. Within a fortnight following that deal, RCMA applied for SEP to be wound up and made EMA a non-party to the application. RCMA and SEP had inked a pact for the former to assume SEP's market making obligations in exchange for a 70 per cent share of the incentive payments that SEP would get from SP Services. Under the "forward sales contract scheme", SEP, as a market maker, was required to trade electricity futures and, in return, receive incentive payments from SP Services, the national utility. In his grounds of decision dated Sept 30 for the winding-up order, High Court Justice Tan Siong Thye said SEP's balance sheet "depicted a discouraging state of affairs" with total liabilities, including contingent liabilities, of S$10.4 million dwarfing its total assets of some S$290,000. Justice Tan also expressed serious doubts over the veracity and reliability of a "one-page balance sheet" that was provided by Mr Peloso that purportedly showed SEP's financial standing as at end-June 2020 and indicated an about-turn to support the company's contention that it was solvent. There were more grave matters. RCMA cited alleged suspicious circumstances relating to SEP's funds, more specifically the garnishment of an account held with DBS by a UAE firm Kashish Worldwide, which had entered into a trading contract with SEP. A liquidator, it said, would be able to determine if there had been any fraud by SEP's management and ensure appropriate action to benefit creditors. Kashish's application to garnish SEP's DBS account in Feb 2019, which it successfully obtained, followed three transfers by Mr Peloso totalling S$6.09 million between November and December 2018 from an OCBC account held by SEP to the DBS one. These transfers ultimately led to the diminishing of the funds despite the injunction, remarked Justice Tan, who also pointed out that Mr Peloso, SEP's sole director, played a significant role in enabling Kashish to garnish the DBS account. "...I also found disconcerting, the ease with which the funds were garnished from the DBS account. The entire process only took three months...," he said, adding that the circumstances were "highly suspicious". Hence, he added that the "lack of probity in the conduct and management of the company's affairs justified a winding-up." SEP's woes could once again renew doubts over the survivability of electricity retailers, more so independent retailers, in a small market such as Singapore. But one industry player said: "The collapse of SEP does not have anything to do with the wider industry. This is such unusual circumstances for a small company." Amendment note: In an earlier version, it was mentioned that SEP is the developer of solar rooftops for Singapore's industrial landlord JTC Corp. The contract with JTC is in fact undertaken by a related entity, Sun Electric Energy Assets Pte Ltd and not SEP. Both companies are under the Sun Electric Group.

NO

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled SoftBank-Backed Greensill Delays Fundraising. If the article mentions that Agritrade Resources has defaulted recently, respond with 'AFTER'. If the article mentions that Agritrade Resources will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Agritrade Resources is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Agritrade Resources is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Agritrade Resources has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Agritrade Resources. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

SoftBank Group Corp. 9984 -0.06% -backed Greensill Capital, a specialty finance startup that helps companies manage cash, has delayed by several months plans to raise fresh money from outside investors, according to people familiar with the matter. Greensill had previously hoped to secure the investment by early January. But the company is unlikely to complete the funding round until late March at the earliest, some of the people said. One of these people said the delay is because Greensill has increased the amount it wants to raise to $1 billion from $500 million. The fundraising delay comes at a challenging time for the company, which competes with banks to supply short-term capital to companies. The firm had anticipated extending $173 billion in financing last year, according to a presentation viewed by The Wall Street Journal, but ultimately provided $143 billion, flat from the year before. Greensill has also run into issues doing business with other SoftBank-related companies. In December, Greensill forgave $435 million in financing to construction startup Katerra, in exchange for a roughly 5% stake in the company, Katerra's chief executive told The Wall Street Journal. Both companies are held in SoftBank's $100 billion Vision Fund. It isn't clear how much the 5% stake in Katerra is worth. At the same time, SoftBank injected $200 million into Katerra to help it avoid bankruptcy. Katerra seeks to construct buildings more cheaply by cutting out middlemen and using factory assembly. Greensill packages its financing deals into investable securities. A Greensill spokesperson said that investors hadn't incurred losses related to Katerra. The spokesperson declined to comment further. A SoftBank spokesperson declined to comment. SoftBank invested nearly $1.5 billion into Greensill in 2019. Other investors include private-equity firm General Atlantic. Former U.K. Prime Minister David Cameron is an adviser. A spokesperson for General Atlantic declined to comment. Greensill is a small part of SoftBank's Vision Fund, which holds stakes in more than 80 companies, including Uber Technologies Inc., chip designer Arm Holdings and South Korean e-commerce site Coupang. The Vision Fund has scored big wins lately, including the initial public offering of food delivery company DoorDash Inc. It has also stumbled, requiring big write-downs on investments in office landlord WeWork and hotel network Oyo Hotels & Homes. Greensill has helped to turbocharge other Vision Fund holdings by extending them supply-chain finance, a form of short-term cash advance that lets companies stretch out the time they have to pay their bills. In addition to Katerra, Vision Fund investees Fair Financial Corp., an auto-financing company, and View Inc., a glass manufacturer, have received financing from Greensill. Last year, Credit Suisse Group AG executives grew concerned about potential conflicts of interest in four multibillion-dollar funds it runs with Greensill after SoftBank invested $700 million into one of the funds. The fund had also made loans to four Vision Fund companies. SoftBank ultimately redeemed its stake, and the bank committed to protecting investors. Credit Suisse remains a key partner for Greensill: It continues to manage the supply-chain finance funds and advises Greensill on its fundraising, alongside Citigroup Inc. As of December, Oyo and Guazi, a Chinese used-car trading platform, were among the top recipients of financing from the main fund, according to its website. Greensill moved last fall to shore up its corporate governance ahead of an eventual initial public offering, including finding a new auditor, selling off a fleet of corporate planes and adding a senior adviser and a nonexecutive director to its board. Other Greensill clients have also encountered difficulties, including NMC Health PLC, U.K.-based rent-to-own business BrightHouse Ltd. and Singapore commodities trader Agritrade Resources Ltd.. All three filed for restructuring last year.

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Greensill Problems Build as Regulator Watches Over Banking Unit. If the article mentions that Agritrade Resources has defaulted recently, respond with 'AFTER'. If the article mentions that Agritrade Resources will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Agritrade Resources is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Agritrade Resources is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Agritrade Resources has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Agritrade Resources. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

Pressure mounted on embattled SoftBank Group Corp. -backed Greensill Capital as it scrambled to sell core parts of its business and regulators intensified supervision of its banking unit. Greensill founder Lex Greensill told employees on a conference call Tuesday that he was focused on keeping the specialty lender's business operating and said there would be new owners by next week, according to people familiar with the matter. Greensill spent Tuesday going through the company's books with Apollo Global Management Inc., which has been in talks to take over some of its business, according to a person familiar with the discussions. The deal could see the bulk of the startup, which two years ago was valued at $4 billion, trade hands for around $100 million. In a statement, a Greensill spokesperson confirmed the company was in talks to sell a large part of its business. 'While the structure of the new business is still being determined, we expect the transaction will ensure the majority of Greensill clients will continue to be funded in the same way as they currently are.' Meanwhile on Tuesday, a second fund manager, GAM Holding AG , barred investors from trading in and out of its Greensill-connected fund 'as a result of recent market developments' and related media coverage. It plans to wind down the $842 million fund and return the money to investors. Greensill's business model was upended Monday after Credit Suisse made a similar move, suspending $10 billion in investment funds that contain securities created by the financial startup. U.K.-based Greensill was founded in 2011 by Mr. Greensill, a former Citigroup Inc. and Morgan Stanley financier. It specializes in an area known as supply-chain finance, a form of short-term cash advance that lets companies stretch out the time they have to pay their bills. Greensill packages the cash advances it makes to companies into bondlike securities. The GAM and Credit Suisse funds invested exclusively in Greensill-generated assets, selling them on to investors looking to eke out higher returns than they could get from traditional money-market funds. The Credit Suisse and GAM funds were crucial to Greensill's business of extending financing to blue-chip clients including AstraZeneca PLC and Ford Motor Co. The funds also contained notes tied to Greensill's lesser-known customers, including small startup businesses and companies that are considered higher-risk borrowers. The Wall Street Journal reported Monday that Greensill had hired restructuring advisers and could file for insolvency, the U.K. equivalent of bankruptcy, within days, a move that was sparked by the closure of the funds. In Germany, financial regulator BaFin in recent weeks appointed a special representative to oversee day-to-day operations of Greensill's Bremen-based banking unit, according to people familiar with Greensill. A Greensill spokesperson said BaFin's audit of Greensill Bank started last fall and 'has specifically not revealed any malfeasance at the bank.' Greensill acquired the small German bank in 2014 for around $20 million. In 2019, Greensill used the bulk of an $800 million investment from Softbank's Vision Fund to recapitalize the German lender, boosting its capital buffers. It used the bank to fund its supply chainfinance deals until it sold them off to the investment funds. 'The bank is as much as anything a warehouse that provides us with the ability to manage the liquidity requirements of our business,' Mr. Greensill said in an interview at that time. Given its relative size, Greensill is unlikely to cause widespread disruption in the financial world, though it could cause problems for its customers as they look for alternative forms of short-term financing. Greensill reported $420 million in revenue in 2019. Greensill said it generated more than $140 billion in financing last year. Some of that total counts short-term financing deals with companies that get renewed multiple times a year. The banking subsidiary in Germany at the end of 2019 had ???3.8 billion in assets, currently equivalent to about $4.5 billion, according to Scope Ratings. It had ???3.3 billion in deposits, much of which fall under Germany's generous deposit insurance programs. In the case of Credit Suisse, a key factor driving the fund closures was the decision in recent days by a credit insurance provider not to backstop new Greensill assets, Mr. Greensill told employees on the conference call Tuesday. On Monday, a judge in the Supreme Court of New South Wales Australia rejected a suit brought by Greensill in February to demand its credit insurers maintain coverage on $4.6 billion of assets related to around 40 clients. The insurers included BCC Trade Credit Pty Ltd., which is a unit of Tokio Marine Holdings Inc., and Insurance Australia Group Ltd. The judge's ruling said that the insurers informed Greensill in September that they would drop coverage as of this month. Credit insurance protects investors from losses and gives extra comfort in deals related to the types of less established or unrated companies on Greensill's client list. Last year, several Greensill clients ran into financial difficulties. They included NMC Health PLC, U.K.-based rent-to-own business BrightHouse Ltd. and Singapore commodities trader Agritrade Resources Ltd. All three filed for restructuring. A Greensill spokesman said in October that credit insurance was in place for each of these companies. Credit Suisse's relationship with Greensill also includes a loan the Swiss bank made last fall, according to people familiar with the matter. The loan, which one of the people said is worth $140 million, remains outstanding and was meant as a bridge to help Greensill while it was trying to raise fresh equity, the people said. The existence of the loan and the move by the German regulator were first reported by the Financial Times. Credit Suisse froze its funds Monday because of difficulties ascertaining accurate valuations of some assets created by Greensill. The Journal reported Sunday that Credit Suisse had grown concerned about the funds' exposure to a single client, U.K. steel magnate Sanjeev Gupta. GAM on Monday said it had no exposure to businesses affiliated with Mr. Gupta. In July 2018, GAM froze a $12 billion fund after an internal whistleblower raised concerns about how the fund valued the Greensill assets at the time. These included hundreds of millions of dollars of illiquid assets tied to Mr. Gupta's businesses. The German regulator,BaFin, began examining ties between Mr. Gupta's businesses and Greensill's German banking unit last year, according to a person familiar with the probe. The German regulator was concerned that Greensill Bank had too much exposure to Mr. Gupta's businesses. In the talks with Apollo, one plan is to sell the good parts of Greensill, including performing assets and the core operating business, according to people familiar with the talks. The rest of Greensill, including riskier loans to Mr. Gupta's companies and supply-chain financing deals Greensill did with other SoftBank Vision Fund companies, would be dealt with separately.

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Daily Debrief: What Happened Today. If the article mentions that Agritrade International has defaulted recently, respond with 'AFTER'. If the article mentions that Agritrade International will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Agritrade International is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Agritrade International is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Agritrade International has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Agritrade International. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

Stories you might have missed Singapore exports down 20.6% in December in third straight month of contraction SINGAPORE'S non-oil domestic exports (NODX) contracted again in December, dragged by declines in non-electronic shipments and declining deliveries to most of the Republic's top 10 key markets, data from Enterprise Singapore (EnterpriseSG) showed on Tuesday (Jan 17). Tourism receipts total S$13.8b-S$14.3b in 2022; higher forecasts for 2023: STB SINGAPORE tourism receipts reached an estimated S$13.8 billion to S$14.3 billion in 2022, about half of the 2019 pre-pandemic level, based on preliminary figures, the Singapore Tourism Board (STB) said at their year-in-review on Tuesday (Jan 17). South-east Asia food delivery GMV growth in 2022 slows to 5%: report THE total gross merchandise value (GMV) of South-east Asia's food delivery platforms in 2022 grew a muted 5 per cent to US$16.3 billion after supercharged growth from the pandemic, according to the Food Delivery Platforms in South-east Asia report by venture builder Momentum Works. Kitchen Culture, ex-CEO drop legal proceedings, agree to settle KITCHEN Culture and its former chief executive Lim Wee Li have discontinued their respective legal proceedings against each other after agreeing to a settlement. Meyer Park en bloc sale relaunched at lower S$390m reserve price FREEHOLD sea-fronting Meyer Park has been relaunched for collective sale at a lower reserve price of S$390 million after its two previous attempts closed without a sale. Former Agritrade CFO gets 20 years jail for defrauding banks involving US$586 million in loans LIM BENG KIM, a former chief financial officer of commodities firm Agritrade International, was sentenced to 20 years jail for defrauding over a dozen banks and causing almost US$500 million in losses. The STI today Singapore stocks slide in line with most Asian bourses SINGAPORE shares slid in line with the declines recorded at most Asian bourses on Tuesday (Jan 17), amid reports of the Republic's December exports having experienced their steepest decline in a decade.

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Indonesia's Ciputra Reaches Agreement To Restructure $56.3 Million in Bonds. If the article mentions that Ciputra Surya has defaulted recently, respond with 'AFTER'. If the article mentions that Ciputra Surya will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Ciputra Surya is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Ciputra Surya is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Ciputra Surya has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Ciputra Surya. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

JAKARTA, Indonesia -- After nine months of negotiations, PT Ciputra Development has reached agreement to restructure 450 billion rupiah ($56.3 million) in bonds, marking the first time an Indonesian company has managed to successfully do so. The bond restructuring, however, is just the beginning for the real-estate developer, which still has another $305 million and 780 billion rupiah in debt. Finance Director Harun Hajadi said Ciputra will list a unit on the Jakarta Stock Exchange in order to change the bonds into shares, but without an initial public offering -- marking another first. Initially the rupiah bondholders were reluctant to agree to the deal. "This is really the first time they've done a major restructuring," Mr. Hajadi said. "Let's say if you propose something very creative ... usually in the beginning they always say no." The bondholders finally agreed a month ago, and by Dec. 31, Mr. Hajadi said, they will own 56% of property company PT Ciputra Surya. The original bonds -- one issue of 150 billion rupiah maturing in 2001 and one of 300 billion rupiah maturing in 2003 -- will be replaced by a zero coupon bond maturing in 2003. And the lost interest yields will be replaced by shares in Ciputra Surya with a 31% discount on the net asset value of the company. By expanding the shareholders to more than 300, Ciputra Surya will be considered a public company and be able to list without an initial public offering, Mr. Hajadi said. The shares will be listed at 500 rupiah, pending approval from the capital market regulatory body, Bapepam. Bapepam Chairman Yusuf Anwar has given a "green light" for the plan but nothing "is in writing yet," Mr. Hajadi said. He said this is the only way his company can possibly restructure these bonds amid slumping house sales, low occupancy rates, and falling rents, which have dried up Ciputra Development's cash flow. Ciputra was among the first debtors to admit defeat in the face of the financial crisis. The company told its bondholders it wouldn't be able to service the debt in February and began negotiating to restructure the bonds in March. Ciputra's mountain of debt is typical of many Indonesian companies that were caught off guard by the rupiah's depreciation of more than 70% against the dollar since last July, with few having adequately hedged their foreign borrowings. In retrospect, Mr. Hajadi now said not hedging was a mistake. To restructure $200 million and 180 billion rupiah in unsecured loans, including $125 million in floating rate notes, the company is trying to apply the same restructuring model as with the rupiah bonds. But this is still under negotiation, he said. If the noteholders and other creditors of the unsecured loans agree, Mr. Hajadi said the company would list another two subsidiaries and give the creditors shares for their lost yields. Most of the company's foreign creditors fall in this grouping. The remaining $105 million and 600 billion rupiah in secured loans is being negotiated bilaterally. The company has succeeded in renegotiating 35% of this, but none of the dollar debt, which is due solely to Indonesian banks, has been rescheduled. What makes the bond restructuring deal attractive, according to Mr. Hajadi, is that holders can cash in on the shares at any time. And with the discount rate, even if the share price collapses on the first day, the bondholders "will still make money," he said.

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled "Hidden" defaults set to soar as recession squeezes companies. If the article mentions that Asia Aluminum Holdings Ltd has defaulted recently, respond with 'AFTER'. If the article mentions that Asia Aluminum Holdings Ltd will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Asia Aluminum Holdings Ltd is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Asia Aluminum Holdings Ltd is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Asia Aluminum Holdings Ltd has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Asia Aluminum Holdings Ltd. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

THE worst recession since the Great Depression is prompting indebted companies to default, and increasingly more will do so in a way that's harder for investors to detect. Rating firms predict that more companies will pursue distressed debt exchanges, in which they try to overcome liquidity problems by swapping debt or buying it back at steep discounts. Such moves are less stark than missed payments and can fly under the radar for the general investing public, but often result in losses for creditors and are usually counted as defaults by rating companies. Moody's Investors Service forecasts an increase in the overall number of distressed exchanges amid the economic downturn stemming from the coronavirus pandemic and low oil prices. Fitch Ratings said the "price dislocation" in high-yield bond markets could lead to a surge in the practice. There have already been a handful of them this year, including Indonesian coal firm Geo Energy Resources Ltd and Chinese business park developer Yida China Holdings Ltd. "Distressed exchanges often are just 'bandages' and the firm eventually goes bankrupt," said Edward Altman, a professor emeritus at New York University's Stern School of Business and director of credit and debt market research at the NYU Salomon Center. Altman, who developed a widely used method called the Z-score for predicting business failures, estimates that up to 40 per cent of distressed exchanges end in bankruptcy within three years. Winners, Losers The Covid-19 outbreak and unprecedented lockdowns prompted the International Monetary Fund to predict that the "Great Lockdown" recession would be the steepest in almost a century. If history is any guide, that means there will be a surge in distressed exchanges. There was a spike in such practices during the global financial crisis, and cases have remained high in recent years as borrowers struggled under debt they had piled on in a decade of cheap money. Distressed exchanges as a share of total defaults rose from around 10 per cent in the years before 2008 to roughly 40 per cent subsequently, according to Moody's in March. In the practice, borrowers offer creditors new or restructured debt securities in exchange for the ones they hold. Companies can also offer cash to buy back notes at a substantial discount to the principal. In sum, the packages amount to less than what the firms originally owed. Distressed exchanges can be acrimonious at times, as was the case for Chinese firm Asia Aluminum Holdings Ltd, where bondholders formed a group to oppose a buyback proposal in 2009, as they felt it was too low. The company eventually cancelled the bond buyback and liquidators were appointed. Investors may agree to distressed exchanges for a variety of reasons: they might believe the borrower just needs time to turn things around, or they may feel they would lose more if the company were immediately pushed into liquidation. In some instances, investors even initiate the discussion with the company to buy back bonds as they are keen to liquidate their holdings and can't find other buyers, according to Xavier Jean, senior director for corporate ratings at S&P Global Ratings. While the exchange price may be higher than the current market price, it is important for investors to look beyond short-term mark-to-market gains as they don't get their principal back, according to Raymond Chia, head of credit research for Asia-excluding Japan at Schroder Investment Management. The winner in distressed exchanges is "always the company" and the loser is the investor, he said.

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled ?€?Hidden?€? defaults set to soar as recession squeezes firms. If the article mentions that Asia Aluminum Holdings has defaulted recently, respond with 'AFTER'. If the article mentions that Asia Aluminum Holdings will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Asia Aluminum Holdings is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Asia Aluminum Holdings is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Asia Aluminum Holdings has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Asia Aluminum Holdings. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

The worst recession since the Great Depression is prompting indebted companies to default, and increasingly more will do so in a way that's harder for investors to detect. Rating firms predict that more companies will pursue distressed debt exchanges, in which they try to overcome liquidity problems by swapping debt or buying it back at steep discounts. Such moves are less stark than missed payments and can fly under the radar for the general investing public, but often result in losses for creditors and are usually counted as defaults by rating companies. Moody's Investors Service forecasts an increase in the overall number of distressed exchanges amid the economic downturn stemming from the coronavirus pandemic and low oil prices. Fitch Ratings said the 'price dislocation' in high-yield bond markets could lead to a surge in the practice. There have already been a handful of them this year, including Indonesian coal firm Geo Energy Resources Ltd. and Chinese business park developer Yida China Holdings Ltd. 'Distressed exchanges often are just 'bandages' and the firm eventually goes bankrupt,' said Edward Altman, a professor emeritus at New York University's Stern School of Business and director of credit and debt market research at the NYU Salomon Center. Altman, who developed a widely used method called the Z-score for predicting business failures, estimates that up to 40 percent of distressed exchanges end in bankruptcy within three years. Winners, Losers The Covid-19 outbreak and unprecedented lockdowns prompted the International Monetary Fund to predict that the 'Great Lockdown' recession would be the steepest in almost a century. If history is any guide, that means there will be a surge in distressed exchanges. There was a spike in such practices during the global financial crisis, and cases have remained high in recent years as borrowers struggled under debt they had piled on in a decade of cheap money. Distressed exchanges as a share of total defaults rose from around 10 percent in the years before 2008 to roughly 40 percent subsequently, according to Moody's in March. In the practice, borrowers offer creditors new or restructured debt securities in exchange for the ones they hold. Companies can also offer cash to buy back notes at a substantial discount to the principal. In sum, the packages amount to less than what the firms originally owed. Distressed exchanges can be acrimonious at times, as was the case for Chinese firm Asia Aluminum Holdings Ltd., where bondholders formed a group to oppose a buyback proposal in 2009, as they felt it was too low. The company eventually canceled the bond buyback and liquidators were appointed. Investors may agree to distressed exchanges for a variety of reasons: they might believe the borrower just needs time to turn things around, or they may feel they would lose more if the company were immediately pushed into liquidation. In some instances, investors even initiate the discussion with the company to buy back bonds as they are keen to liquidate their holdings and can't find other buyers, according to Xavier Jean, senior director for corporate ratings at S&P Global Ratings. While the exchange price may be higher than the current market price, it is important for investors to look beyond short-term mark-to-market gains as they don't get their principal back, according to Raymond Chia, head of credit research for Asia-excluding Japan at Schroder Investment Management. The winner in distressed exchanges is 'always the company' and the loser is the investor, he said.

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled "Hidden" defaults set to soar as recession squeezes companies. If the article mentions that Asia Aluminum Holdings Ltd has defaulted recently, respond with 'AFTER'. If the article mentions that Asia Aluminum Holdings Ltd will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Asia Aluminum Holdings Ltd is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Asia Aluminum Holdings Ltd is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Asia Aluminum Holdings Ltd has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Asia Aluminum Holdings Ltd. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

THE worst recession since the Great Depression is prompting indebted companies to default, and increasingly more will do so in a way that's harder for investors to detect. Rating firms predict that more companies will pursue distressed debt exchanges, in which they try to overcome liquidity problems by swapping debt or buying it back at steep discounts. Such moves are less stark than missed payments and can fly under the radar for the general investing public, but often result in losses for creditors and are usually counted as defaults by rating companies. Moody's Investors Service forecasts an increase in the overall number of distressed exchanges amid the economic downturn stemming from the coronavirus pandemic and low oil prices. Fitch Ratings said the "price dislocation" in high-yield bond markets could lead to a surge in the practice. There have already been a handful of them this year, including Indonesian coal firm Geo Energy Resources Ltd and Chinese business park developer Yida China Holdings Ltd. "Distressed exchanges often are just 'bandages' and the firm eventually goes bankrupt," said Edward Altman, a professor emeritus at New York University's Stern School of Business and director of credit and debt market research at the NYU Salomon Center. Altman, who developed a widely used method called the Z-score for predicting business failures, estimates that up to 40 per cent of distressed exchanges end in bankruptcy within three years. Winners, Losers The Covid-19 outbreak and unprecedented lockdowns prompted the International Monetary Fund to predict that the "Great Lockdown" recession would be the steepest in almost a century. If history is any guide, that means there will be a surge in distressed exchanges. There was a spike in such practices during the global financial crisis, and cases have remained high in recent years as borrowers struggled under debt they had piled on in a decade of cheap money. Distressed exchanges as a share of total defaults rose from around 10 per cent in the years before 2008 to roughly 40 per cent subsequently, according to Moody's in March. In the practice, borrowers offer creditors new or restructured debt securities in exchange for the ones they hold. Companies can also offer cash to buy back notes at a substantial discount to the principal. In sum, the packages amount to less than what the firms originally owed. Distressed exchanges can be acrimonious at times, as was the case for Chinese firm Asia Aluminum Holdings Ltd, where bondholders formed a group to oppose a buyback proposal in 2009, as they felt it was too low. The company eventually cancelled the bond buyback and liquidators were appointed. Investors may agree to distressed exchanges for a variety of reasons: they might believe the borrower just needs time to turn things around, or they may feel they would lose more if the company were immediately pushed into liquidation. In some instances, investors even initiate the discussion with the company to buy back bonds as they are keen to liquidate their holdings and can't find other buyers, according to Xavier Jean, senior director for corporate ratings at S&P Global Ratings. While the exchange price may be higher than the current market price, it is important for investors to look beyond short-term mark-to-market gains as they don't get their principal back, according to Raymond Chia, head of credit research for Asia-excluding Japan at Schroder Investment Management. The winner in distressed exchanges is "always the company" and the loser is the investor, he said.

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled ?€?Hidden?€? defaults set to soar as recession squeezes firms. If the article mentions that Asia Aluminum Holdings has defaulted recently, respond with 'AFTER'. If the article mentions that Asia Aluminum Holdings will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Asia Aluminum Holdings is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Asia Aluminum Holdings is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Asia Aluminum Holdings has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Asia Aluminum Holdings. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

The worst recession since the Great Depression is prompting indebted companies to default, and increasingly more will do so in a way that's harder for investors to detect. Rating firms predict that more companies will pursue distressed debt exchanges, in which they try to overcome liquidity problems by swapping debt or buying it back at steep discounts. Such moves are less stark than missed payments and can fly under the radar for the general investing public, but often result in losses for creditors and are usually counted as defaults by rating companies. Moody's Investors Service forecasts an increase in the overall number of distressed exchanges amid the economic downturn stemming from the coronavirus pandemic and low oil prices. Fitch Ratings said the 'price dislocation' in high-yield bond markets could lead to a surge in the practice. There have already been a handful of them this year, including Indonesian coal firm Geo Energy Resources Ltd. and Chinese business park developer Yida China Holdings Ltd. 'Distressed exchanges often are just 'bandages' and the firm eventually goes bankrupt,' said Edward Altman, a professor emeritus at New York University's Stern School of Business and director of credit and debt market research at the NYU Salomon Center. Altman, who developed a widely used method called the Z-score for predicting business failures, estimates that up to 40 percent of distressed exchanges end in bankruptcy within three years. Winners, Losers The Covid-19 outbreak and unprecedented lockdowns prompted the International Monetary Fund to predict that the 'Great Lockdown' recession would be the steepest in almost a century. If history is any guide, that means there will be a surge in distressed exchanges. There was a spike in such practices during the global financial crisis, and cases have remained high in recent years as borrowers struggled under debt they had piled on in a decade of cheap money. Distressed exchanges as a share of total defaults rose from around 10 percent in the years before 2008 to roughly 40 percent subsequently, according to Moody's in March. In the practice, borrowers offer creditors new or restructured debt securities in exchange for the ones they hold. Companies can also offer cash to buy back notes at a substantial discount to the principal. In sum, the packages amount to less than what the firms originally owed. Distressed exchanges can be acrimonious at times, as was the case for Chinese firm Asia Aluminum Holdings Ltd., where bondholders formed a group to oppose a buyback proposal in 2009, as they felt it was too low. The company eventually canceled the bond buyback and liquidators were appointed. Investors may agree to distressed exchanges for a variety of reasons: they might believe the borrower just needs time to turn things around, or they may feel they would lose more if the company were immediately pushed into liquidation. In some instances, investors even initiate the discussion with the company to buy back bonds as they are keen to liquidate their holdings and can't find other buyers, according to Xavier Jean, senior director for corporate ratings at S&P Global Ratings. While the exchange price may be higher than the current market price, it is important for investors to look beyond short-term mark-to-market gains as they don't get their principal back, according to Raymond Chia, head of credit research for Asia-excluding Japan at Schroder Investment Management. The winner in distressed exchanges is 'always the company' and the loser is the investor, he said.

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Pharmaniaga's situation offers a shot at pharmaceutical procurement reform: Gallen Centre. If the article mentions that Pharmaniaga Bhd has defaulted recently, respond with 'AFTER'. If the article mentions that Pharmaniaga Bhd will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Pharmaniaga Bhd is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Pharmaniaga Bhd is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Pharmaniaga Bhd has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Pharmaniaga Bhd. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

KUALA LUMPUR: The inclusion of Pharmaniaga Bhd into Bursa Malaysia's Practice Note 17 of financially-distressed companies represents a wake up call for the pharmaceutical sector. It highlighted the need for urgent reforms particularly on the public sector's procurement of medicines, said the Galen Centre for Health and Social Policy. "The situation affecting Pharmaniaga is very worrying and has potentially severe implications across the entire Malaysian pharmaceutical landscape, especially the public health sector," said Gallen Centre chief executive officer Azrul Mohd Khalibtoday. "If the company deteriorates further, there could be a massive disruption to the supply of medicines and drugs to the public health system," he added.More News Azrul said the situation affecting Pharmaniaga exposed vulnerabilities in the current public health sector's pharmaceutical procurement processes and highlighted the need to undertake long argued for reforms in this sector.?? "There is a need to emphasise on the importance of competition, diversity of providers, getting rid of tender agents as middlemen, and reducing government interference." He said Pharmaniaga had enjoyed an exclusive concession for more than a quarter of a century to purchase, store, supply and distribute at least 700 pharmaceutical products under the ??Approved Products Purchase List (APPL).?? This represents more than a third of the government's branded and generic drug and medicine supply.?? "This GLC also has the logistics and distribution contract for these medicines. The government's practice of exclusive concessions which grants individual companies such as Pharmaniaga and other GLCs major influence and dominance over large portions of our healthcare system, including hospital services, creates an unhealthy dependence.?? "These companies will be considered indispensable and become too big to fail. Our public healthcare system is at risk of massive disruption when those GLCs run into difficulty. This is one such example," Azrul pointed out. In 2019, he said, the government had made a commitment to move away from concession agreements and adopt open tenders.?? But this was disrupted by the Covid-19 crisis and Pharmaniaga had multiple extensions.?? "Unfortunately, any aspiring or potential local competitor or alternative to?? Pharmaniaga would have already rightly been discouraged from investing in participating in such tenders as the APPL, even if it were to offer better value." He said the reform could also include removing dependence on tender agents, acting as middlemen within the procurement process, who charge commission for their services and increase the cost of medicines.?? "Allowing suppliers to negotiate and bid directly with the government could potentially enable millions in public funds saved, lower prices, increase cost effectiveness and for newer therapies to be made available for patients. It will introduce improved diversity of suppliers and reduce vulnerability," Azrul said. He said for now, Pharmaniaga's classification would not cause an immediate and complete disruption in its current ability to service the public health sector.?? However, the situation could change rapidly if the financial situation does not improve within the next year. "It is unlikely that Pharmaniaga will be able to offload the majority of its Sinovac Covid-19 vaccines worth RM552.3 million, which reportedly expire in June 2024.?? "Better understanding of the performance of Covid-19 vaccines and the disease, have resulted in significantly decreased demand for this vaccine from countries in the region.?? "Pharmaniaga's stock must also compete with the new generation of bivalent Covid-19 vaccines which are starting to become available, promising improved coverage of new variants of the coronavirus," Azrul said. The government, if it chose to intervene, had a number of options, he added. "It could provide a significant cash infusion, guarantee or bailout for the GLC which will likely be in the range of RM700-RM900 million." "It could provide a government guarantee which Pharmaniaga could rely on to facilitate financial arrangements or obtain credit from banks or other financial institutions. "Or it could grant yet another decade-long concession arrangement which would guarantee a significant and predictable volume of business for Pharmaniaga for years to come," he said.

BEFORE

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled AirAsia dismisses legacy airline group as "inconsequential, self-serving". If the article mentions that AirAsia has defaulted recently, respond with 'AFTER'. If the article mentions that AirAsia will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. AirAsia is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. AirAsia is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. AirAsia has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of AirAsia. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

NST Business KUALA LUMPUR: AirAsia Group has taken a swipe at the Board of Airline Representatives (BAR) for its comments on the low-cost carrier's ongoing dispute with airport operator Malaysia Airports Holdings Bhd (MAHB). AirAsia said BAR had no standing in the issue as neither do its member airlines operate from klia2 nor affected by the court decision. This had renders BAR's comments as ' inconsequential and immaterial', AirAsia Bhd chief executive officer Riad Asmat said in a statement today. 'We don't believe that BAR is capable of making positive contributions or comments as they do not represent budget airlines or those who travel on budget airlines,' Riad added. BAR, which claims to represent most of the airlines operating in Malaysia, yesterday welcomed the High Court's decision to dismiss an application by AirAsia and AirAsia X Bhd to strike out suits by MAHB over payment of outstanding airport tax. BAR reportedly said it was glad that the equalisation of passenger service charges (PSC) was 'finally happening' after so long. The High Court ruled last week that AirAsia and AirAsia X must pay RM40.6 million in outstanding PSC ' which the two airlines had refused to collect from passengers - to MAHB's subsidiary Malaysia Airports (Sepang) Sdn Bhd (MASSB). AirAsia Group is appealing the decision. Riad said that there was a misconception being encouraged that the AirAsia Group had defaulted in paying the amount claimed by MAHB. 'It must be stressed that AirAsia did not collect these monies from the passengers as we believe they should not be burdened into unfairly paying for an inferior service as they would for the more well-equipped and spacious KLIA. Instead, MAHB sued AirAsia to recover this uncollected amount.' AirAsia said BAR had alleged in a statement that the former's refusal to collect the extra-imposed PSC charges from passengers 'had led to an uneven playing field.' 'We believe in and want a level playing field, it is not for any particular airline to dictate. In any other country, the stunt by AirAsia to not collect the mandated amount or withhold taxes and fees would have resulted in penalties and even their aircraft being impounded,' BAR was reported as saying. BAR is currently led by a representative of Malaysia Airlines Bhd. MAHB CEO Raja Azmi Raja Nazuddin had also welcomed the court decision, saying it meant MAHB could collect the PSC amount gazetted by the Malaysian Aviation Commission (Mavcom). AirAsia said Raja Azmi's comments had echoed those of BAR. He had said: 'It also means that we can have an environment of fairer competition between airlines operating at these two terminals, as well as allow Malaysia to be better aligned to international guidelines, including with the International Civil Aviation Organisation principle of non-discriminatory pricing at airports.' Riad said it was uncanny that the comments by Raja Azmi and BAR were similar. 'As far as AirAsia is concerned, their comments are based on proprietary interests and not in the interests of the travelling public.' 'In the name of fair competition as frequently propagated by Raja Azmi, MAHB should seriously consider building a dedicated and functional low cost carrier terminal which charges lower rates like in Jakarta and Tokyo, among others. This will provide the much needed boost for the local aviation industry and position Kuala Lumpur as a key aviation hub,' he added.

NO

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Shares in AirAsia?€?s long-haul carrier sink on restructuring plan. If the article mentions that AirAsia has defaulted recently, respond with 'AFTER'. If the article mentions that AirAsia will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. AirAsia is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. AirAsia is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. AirAsia has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of AirAsia. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

Shares in AirAsia's long-haul unit skidded after the Malaysian carrier launched a last-ditch plan to save the business, blaming 'severe liquidity constraints' caused by the coronavirus pandemic. AirAsia X's Kuala Lumpur-traded stock fell 10 per cent on Wednesday a day after the company warned of 'an imminent default of contractual commitments [that] will precipitate a potential liquidation of the airline'. The proposed restructuring comes as the future of AirAsia, owned by Malaysian tycoon Tony Fernandes, hangs in the balance. The low-cost carrier has been hit hard by virus-driven border closures and travel restrictions that wiped out much of its passenger traffic. 'A major debt restructuring and a renegotiation of its financial obligations are prerequisites for any raising of fresh equity which will be required to restart the airline,' AirAsia X said in a statement late on Tuesday. The plan, which requires the approval of shareholders, creditors and Malaysia's high court, involves reorganising AirAsia X's RM63.5bn ($15.3bn) in debt to a principal amount of RM200m and waiving the rest, according to an exchange filing. It also proposes reducing the unit's issued share capital by 90 per cent and consolidating every 10 existing ordinary AirAsia X shares into one. The carrier also will overhaul its workforce, aircraft fleet and route network to slash costs. This is pretty much close to a last-ditch effort to preserve its business AirAsia X said there were 'varying degrees of support' for the scheme among its large creditors, all of which have 'expressed strong support for a continuation of the airline business'. Paul Yong, an equity analyst at DBS, said a lot would hinge on how creditors assess AirAsia X's portfolio and the amount of equity it can raise, which itself depends on how much major shareholders AirAsia and Mr Fernandes are willing to contribute. AirAsia X had a weak balance sheet prior to the pandemic, he noted, and with long-haul routes among the worst affected by Covid-19 'this is pretty much close to a last-ditch effort to preserve its business', he said. As of June 30, AirAsia group's unaudited current liabilities of RM3.38bn were more than double its unaudited current assets of RM1.39bn. Benyamin Ismail, AirAsia X's chief executive, said the pandemic had been 'extremely difficult' for the airline, which has cut salaries and grounded flights. 'Our focus is to ensure a successful restructuring to keep as many jobs as possible,' he said. AirAsia X, which has been in operation for 13 years, had a fleet of 40 aircraft as of the second quarter and as of July was flying to 26 destinations. The restructuring coincides with a tough time for the AirAsia group, which this week announced the closure of its Japan unit. The Malaysian carrier's auditor in July said coronavirus had cast 'significant doubt' on the company's ability to remain a going concern. Analysts have warned that worse could be yet to come for airlines worldwide as the pandemic shows little sign of abating. Mr Fernandes bought AirAsia from the Malaysian government in 2001 for less than a dollar and built it into one of south-east Asia's biggest carriers. British-educated Mr Fernandes worked early in his career for Richard Branson's Virgin Music. He is well-known for his forays into English football and Formula One with his ownership of Queens Park Rangers and Caterham, respectively. AirAsia was this year pulled into a UK bribery investigation of Airbus when the Serious Fraud Office published details of its probe in which individuals associated with Airbus were found to have paid bribes to secure deals with AirAsia and AirAsia X. The airline has said it 'vigorously rejects and denies' allegations of wrongdoing.

BEFORE

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Covid-19 brings Tony Fernandes?€?s global empire down to earth. If the article mentions that AirAsia has defaulted recently, respond with 'AFTER'. If the article mentions that AirAsia will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. AirAsia is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. AirAsia is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. AirAsia has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of AirAsia. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

Tony Fernandes is one of Asia's most marketing-savvy entrepreneurs, often drawing comparisons with Richard Branson, the British entrepreneur behind Virgin and his one-time mentor and boss. The Malaysian tycoon bought AirAsia for less than $1 in 2001 and turned it into one of the largest low-cost carriers in the region. He built his empire using many of the publicity-friendly tactics for which Sir Richard became famous. In 2013, he made headlines when the Virgin boss dressed as an AirAsia flight attendant ' in lipstick and fishnet stockings ' after losing a bet. Announcements of new aircraft orders at air shows often resemble variety shows featuring cabin crew in AirAsia's red uniforms. But now, Mr Fernandes is facing one of his toughest challenges as the coronavirus pandemic pummels his business. AirAsia X, his long-haul airline, is saddled with Rm63.5bn ($15.3bn) of debt and earlier this month it unveiled a restructuring plan to cope with 'severe liquidity constraints'. AirAsia X's deputy chairman told local media at the weekend the unit had 'run out of money', adding it was liquidating its Indonesian business and writing down its 49 per cent stake in Thai AirAsia X. The long-haul arm's share price has plunged 77 per cent this year. AirAsia, the heart of Mr Fernandes's empire, is facing its own struggles and the airline's share price has fallen 65 per cent in 2020. The company has pulled out of Japan and its Indian airline, a joint venture with the Tata Group, has come under renewed scrutiny after reports the Malaysian business had stopped funding it. Mr Fernandes denied the claim. The crisis has forced AirAsia to seek financial support from the Malaysian government for the first time. 'In 19 years, we've never [had] any necessity to ask for a government-backed loan,' Mr Fernandes told the Financial Times. 'This is solely out of Covid, where we lost so much of our sales.' Mr Fernandes's difficulties are indicative of the existential challenge facing the airline sector, with travel restrictions wiping out passenger traffic worldwide. But some analysts also suggest the group has overstretched, even if a collapse remains unlikely. AirAsia quit Japan months after EY, the group's auditor, said the pandemic had cast 'significant doubt' on the carrier's ability to continue as a going concern. EY said that in the 2019 financial year, AirAsia registered a net loss of Rm283m and its current liabilities exceeded current assets by Rm1.84bn. I'm a black and white person, which can get me into trouble Mr Fernandes's businesses sit under an umbrella company called Tune Group, with divisions ranging from the airlines to insurance, professional football and hotels. Mr Fernandes and Kamarudin Meranun, his longtime business partner, jointly hold 32.18 per cent of AirAsia's shares via Tune Live, an investment holding company, and Tune Air, Tune Group's airline division. Tune Group is AirAsia X's largest shareholder with a stake of 17.83 per cent, followed by AirAsia at 13.76 per cent. Mr Fernandes holds a 2.69 per cent stake in AirAsia X. Mr Fernandes is now concentrating on the airline after years of high-profile forays into different sectors. 'AirAsia is the most important baby to me so that's where most of my focus will be,' he said. The tycoon ' who is rarely seen without his signature red AirAsia baseball cap ' bought the Lotus Formula One racing team in 2010 and a year later acquired Queens Park Rangers, the English football team, from Bernie Ecclestone, the former F1 boss. QPR were relegated from the Premier League in 2013 and after winning promotion back to the top tier of English football, were relegated again in 2015. Mr Fernandes quit F1 in 2014, when he sold the team before it collapsed into administration. 'Both F1 and football are highly speculative. In the end it's not how much effort and money you put into it, everything has to fall in place and you've got to be lucky,' said Mr Ecclestone. 'He was probably trying to do too much. The wrong people take advantage if you've got money and I think in his case [that] is what happened. He's not an idiot as far as business is concerned by any means.' The current crisis has highlighted three underlying challenges for Mr Fernandes's business: the long-haul unit's chronic underperformance; the company's huge aircraft fleets; and the difficulty of sustaining the international network. AirAsia X was struggling before the pandemic hit, according to analysts, who point to the difficulty of making a low-cost strategy viable for a long-haul airline. Since listing in Kuala Lumpur in 2013, the unit has registered a full-year net profit just twice. 'If [Mr Fernandes] stuck to just short-haul and even just stuck to Malaysia . . . then he would be a formidable force,' said a banker who has previously worked with the airline. AirAsia is also encumbered by a huge aircraft fleet and has some 350 Airbus narrow-body aircraft on order. It is the second biggest customer for Airbus's popular A320 single-aisle aircraft. 'We have been sceptical about [the] sheer number of orders they placed for some time,' said Sash Tusa, an analyst at Agency Partners. 'Any time an airline gets so big that it starts placing orders which are much bigger than comparable airlines, it is time to get very, very concerned.' Mr Tusa forecast that only 60 aircraft would be delivered until the end of 2027. Mr Fernandes earlier this month said he planned to return as many AirAsia planes as possible and cut the fleet by a quarter to 180 aircraft. The pandemic has also renewed questions about the carrier's aggressive overseas expansion. 'AirAsia at its height . . . arguably was south-east Asia's largest low-cost carrier,' said Paul Yong, an analyst at DBS. Units in Malaysia and Thailand were the most successful but 'going into Indonesia and the Philippines was a tougher proposition because there were already other leaders'. Mr Fernandes admitted that the company could exit more markets. 'For our remaining five airlines there may come a point where we have to maybe exit one but that point hasn't [arisen] yet,' he said. Analysts point to India, where the company is in need of recapitalisation. Neelam Mathews, a New Delhi-based aviation analyst, said the outlook for the airline was 'pretty dismal', adding that competition would become more aggressive following the pandemic. Mr Fernandes, however, sees signs of hope in Asia. Domestic travel in Thailand and Malaysia respectively, for example, have reached 80 per cent and 60 per cent of AirAsia's pre-pandemic levels, he said. He also hopes AirAsia's new super app ' a one-stop travel, ecommerce and fintech platform ' will be a route to better insulating the company from the blows typically suffered by airlines. 'It's a cyclical business in between volcanoes and tsunamis,' he said. Services delivered on the app will be expanded from Malaysia to the rest of south-east Asia in the next three months. Regardless, analysts say the airline is unlikely to collapse. 'The low-cost carrier model post-Covid will be as resilient as it was before and even stronger relative to full-service carriers,' said Mr Yong. Mr Fernandes will no doubt also fall back on the guiding business principles he described in his memoir to find a way out of the morass. 'I'm a black and white person, which can get me into trouble . . . You need to lead through clarity, not manipulation,' he wrote. Tony Fernandes is named CEO of Warner Music Malaysia at the age of 28 Fernandes buys AirAsia for less than $1 and starts building what will become one of the largest budget carriers in the region The carrier's long-haul unit kicks off operations under the branding 'AirAsia X' Fernandes buys Formula One Team Lotus, setting off a legal fight over naming rights with a separate team called Lotus Cars, before buying Caterham Cars and renaming his team after the sports car maker Fernandes buys Bernie Ecclestone's majority stake in British football team Queens Park Rangers Sells struggling motor racing team to an unnamed consortium of Swiss and Middle Eastern investors and ends costly foray into Formula One AirAsia's auditor says the coronavirus pandemic cast 'significant doubt' on the company's ability to continue as a going concern, triggering an 18 per cent share price drop AirAsia shuts Japan unit after six years in operation citing fallout from the pathogen. Later AirAsia X's deputy chairman says unit has 'run out of money', adding it would liquidate its Indonesian business and write down its 49 per cent stake in Thai AirAsia X

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled AirAsia shares fall as carrier rethinks India investment. If the article mentions that AirAsia has defaulted recently, respond with 'AFTER'. If the article mentions that AirAsia will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. AirAsia is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. AirAsia is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. AirAsia has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of AirAsia. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

Shares in AirAsia fell as much as 8 per cent on Wednesday after the Malaysian budget carrier said it would review its investment in India, the strongest signal yet it is reassessing its south Asia business. The statement on Tuesday night came hours after AirAsia's Japanese unit filed for bankruptcy in the Tokyo District Court, citing 'insolvency resulting from a demand slump in travel induced by lockdown restrictions related to the coronavirus pandemic'. AirAsia's Japan and India businesses had been 'draining cash, causing the group much financial stress', said Bo Lingam, AirAsia president. 'Cost containment and reducing cash burns remain key priorities evident by the recent closure of AirAsia Japan and an ongoing review of our investment in AirAsia India.' Tony Fernandes, the Malaysian tycoon who owns AirAsia, had told the Financial Times last month that there was 'no discussion on exiting India' or stopping funding for its Indian airline, which is a joint venture with the Tata Group. Cost containment and reducing cash burns remain key priorities 'AirAsia Japan and AirAsia India were relatively new ventures for them,' said Paul Yong, equity analyst at DBS. 'It's no surprise they are reviewing these first given the parent company needs to preserve resources for itself first.' The company said the total cost of investment in AirAsia Japan had been fully written down. AirAsia had flagged last month that it would end operations in Japan due to fallout from the health crisis, weeks after EY, the group's auditor, expressed 'significant doubt' about the carrier's ability to continue as a going concern. The pandemic has pummelled the Malaysian airline. AirAsia reported its largest loss since listing in 2004 in the second quarter and has launched a debt restructuring plan for its hard-hit long-haul unit. It also has sought financial support from the Malaysian government for the first time. AirAsia's woes are emblematic of the headwinds buffeting the global airline industry, which has been plunged into crisis by wide-ranging travel restrictions aimed at containing the spread of coronavirus. AirAsia said it would remain focused on south-east Asian nations where its 'brand and foothold is strongest'. AirAsia X, the company's long-haul unit, is looking to restructure a Rm63.5bn ($15.5bn) debt load to cope with 'severe liquidity constraints'. The unit's deputy chairman last month said it had 'run out of money' and was liquidating its Indonesian business as well as writing down its 49 per cent stake in Thai AirAsia X. Mr Yong said the long-haul carrier remained 'very vulnerable' and could be 'in trouble for quite some time' as new Covid-19 outbreaks continue to curb international travel. However, AirAsia remains upbeat, noting in its statement that a pick-up in passenger numbers in the region and an increase in sales point to stronger growth in coming months. The carrier also is banking on its new super app ' a one-stop travel, ecommerce and fintech platform ' to help it diversify away from the airline business. The Malaysian government has granted BigPay, AirAsia's digital wallet, a licence to offer services including microcredit. Follow FT's live coverage and analysis of the global pandemic and the rapidly evolving economic crisis here.

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled AirAsia X shares fall 9.5% on rights issue plan. If the article mentions that AirAsia has defaulted recently, respond with 'AFTER'. If the article mentions that AirAsia will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. AirAsia is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. AirAsia is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. AirAsia has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of AirAsia. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

Shares in AirAsia's long-haul unit fell as much as 9.5 per cent on Tuesday in response to a RM500m ($123m) rights and share issuance plan as the struggling Malaysian carrier tries to win creditor backing for a proposed debt restructuring. The tumble in AirAsia X's stock came after the airline on Monday night proposed a rights issue of up to RM300m and an issuance of new shares via a special purpose vehicle of up to RM200m. The company said the plan was a 'critical component' of the RM63.5bn debt restructuring that is a last-ditch attempt to save its business. But the arrangement is subject to the approval of the Malaysian bourse and AirAsia X shareholders at an upcoming extraordinary general meeting. AirAsia X's deputy chairman said in October that the carrier had run out of money and was liquidating its Indonesia business as well as writing down its 49 per cent stake in Thai AirAsia X. That same month the airline, whose shares have fallen 39 per cent this year, warned of 'an imminent default of contractual commitments [that] will precipitate a potential liquidation of the airline' barring restructuring. The alternative to the [debt restructuring] scheme is a liquidation of the airline without any returns to creditors AirAsia group's Japanese unit has filed for bankruptcy and it is reviewing its investment in India. On Monday, AirAsia X also said it was seeking to further shrink its issued share capital by 99.9 per cent in response to 'representations made by certain creditors'. It had previously proposed a reduction by 90 per cent. Paul Yong, an equity analyst at DBS, said Tuesday's share price drop was not surprising because of the dilution effect of a rights issue. But longer term, 'a lot will depend on the ability to actually raise the amount they want to raise,' he added. AirAsia X, which was founded by Malaysian tycoon Tony Fernandes and has been in operation for 13 years, has encountered resistance as it tries to secure creditors' support for the debt restructuring. 'Several lessors have intervened in the restructuring proceedings to register their objections to the scheme,' AirAsia X said. The carrier added that it would continue engaging with creditors to ease concerns, adding: 'The alternative to the scheme is a liquidation of the airline without any returns to creditors'. One AirAsia X creditor, who did not wish to be identified, told the Financial Times last month that it objected the debt restructuring plan: 'We suspect we may have to make some judgment call and take impairments on receivables in the current year. That will diminish our exposure. It seems pretty terminal.' The latest fundraising would finance working capital requirements including staff salaries and aircraft activation costs for 24 months, according to a stock exchange filing. The global airline industry has been pummelled by the coronavirus pandemic, with border controls and travel restrictions all but wiping out passenger traffic. The crisis has also forced the AirAsia group to seek financial support from the Malaysian government for the first time. In July, AirAsia's auditor warned of 'significant doubt' about whether it could continue as a going concern.

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Commentary: Airline industry faces financial crisis with more bankruptcies looming. If the article mentions that AirAsia has defaulted recently, respond with 'AFTER'. If the article mentions that AirAsia will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. AirAsia is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. AirAsia is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. AirAsia has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of AirAsia. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

SINGAPORE: The bottom for the global airline industry in terms of passenger traffic has passed but the financial implications from COVID-19 have only just started and bankruptcies are likely to continue at a steady clip over the next two years. Global air passenger traffic bottomed out in April with a 94.3 per cent drop in revenue passenger kilometres compared to a year ago, based on International Air Transport Association (IATA) data. PROFITABILITY A DISTANCE WAY The second quarter will be a low point in terms of profitability with record losses to be reported by airlines from all markets except China, which bottomed out in February. IATA is projecting US$84 billion in losses for 2020, marking by far the worst annual financial result in aviation history, on the back of revenues of only US$419 billion - a 50 per cent drop from 2019. While the losses should start moderating in the third quarter as traffic and revenues slowly improve driven mainly by recovering domestic markets, it could take at least two years for the industry to return to profitability based on the expected time it will take for the international market to recover. Most airlines cannot be profitable without a full, or almost full, recovery of international air travel, which is not likely until there is a vaccination. Airlines everywhere face a long gruelling battle to survive a prolonged downturn with revenues that will remain insufficient to cover costs ' even with significant cost cutting ' until there is a vaccination. Financial pressure will intensify as losses continue, forcing more airlines into bankruptcy. Debt levels are rising rapidly, creating a mountain that airlines may not be able to climb given the expected slow return to profitability and the several years it could take for many airlines to achieve a profit margin sufficient to cover interest and bond payments. LEASING COSTS DUE Over the next several months airlines will also have to contend with a rise in aircraft leasing costs and wages despite reductions in fleet size and head count. Most airlines have not been making aircraft lease payments, one of their largest cost lines, for the last three months after negotiating initial deferrals with leasing companies. These deferrals are starting to expire and even if they are extended for a few more months, airlines will eventually have to resume making monthly payments plus make up for the missed payments with interest. Double payments in some cases will be required but even spreading out the missed payments over a long period could have a disastrous impact given revenues will remain low and a large portion of the fleet will remain grounded for at least a couple of years. Some airlines are trying to negotiate payment waivers in exchange for longer leases but so far there are very few such deals and leasing companies cannot easily offer such relief except for older aircraft with leases that are about to expire and would be difficult to remarket. Extending deferrals beyond six months is also challenging for many aircraft leasing companies, which could struggle to survive for much longer with virtually no revenues. Airlines may be able to negotiate partial payments, which will help the leasing companies meet their own commitments, while delaying the resumption of full payments and the payback of the missed months plus interest. However, such agreements would make it even harder to achieve the hoped for return to profitability in 2022 or 2023 as payments will eventually have to be made up, potentially contributing to bankruptcies even if demand for air travel improves. WAGE SUPPORT RUNNING OUT The issue of increasing labour costs is driven by the expiration of government wage subsidy or job protection schemes. For the last few months more than 30 major countries have been providing airlines and other types of impacted companies subsidies that cover up to 80 per cent of salaries although with a cap that limits the coverage for high paying jobs such as pilots. In many countries these subsidies will soon expire, leading to job cuts which some airlines have already announced to meet notice requirements for impacted employees and unions. Those airlines that have not yet cut jobs will have little choice but to announce cuts if governments do not extend the schemes. Given the expected long duration of this downturn, most airlines will not need staffing levels to return to pre-pandemic levels until at least 2022 or 2023. As it is not realistic for governments to cover the wages of surplus workers for a couple of years, significant job cuts are unfortunately inevitable at virtually every major airline. The expiration of wage subsidies will also impact the cost of employees that are being retained, leading in some cases to an overall higher wage bill despite the reduction in head count. OTHER COST INCREASES Other costs will increase in the coming months as benefits from government support packages as well as concessions from suppliers expire. For example, airlines have been paying reduced charges, fees and taxes in most countries. Over 30 countries are also providing financial support to airlines, which in several cases have resulted in new or increased government equity stakes. Financial support packages, which often include loans or loan guarantees, are longer lasting than wage subsidies and other benefits but in most cases the funds provided are not sufficient for a prolonged downturn and could prompt airlines to ask for second packages in 2021 or 2022. Some governments may not be willing to bail out airlines a second time, leading to another string of bankruptcies. Several airlines have already entered bankruptcy protection or administration since the start of the pandemic, including Aeromexico, Air Mauritius, Avianca, South Africa's Comair, LATAM Airlines, Thai Airways and Virgin Australia. With all of them, the failure to secure financial support from their governments was the main driver. All seven are expected to successfully emerge from bankruptcy or administration and survive following restructurings. Three airlines have ceased operations entirely and are in the process of being liquidated ' Austria's LEVEL Europe, Germany's SunExpress Deutschland and Thailand-based NokScoot ' but they were small subsidiaries of much larger parents that continue to operate. There have been other collapses since March involving airlines that were already in bankruptcy or administration prior to the pandemic or small regional aircraft operators. GOVERNMENT SUPPORT KEY However, a total of 10 bankruptcies and liquidations among Airbus and Boeing operators in the first four months of the pandemic is not concerning given that even in a typical year this would not be an unusually high number. Back in March, some observers warned there could be mass airline bankruptcies by the end of May, an outcome which was averted due to over US$100 billion in government financial support packages globally. For the rest of this year airline bankruptcies are particularly likely in Africa and Latin America as countries in these regions have generally refused to provide airlines with any significant support. Latin America's three largest airline groups - Aeromexico, Avianca and LATAM - have all entered US Chapter 11 bankruptcy protection, which enables them to cancel contracts ' including aircraft leases and orders - and restructure. Competitors are at a disadvantage as they cannot adapt as easily, leading to more Chapter 11 filings even if they have the ability to secure capital privately. SOME CONSOLIDATION IN ASIA In Asia several major countries also have not yet provided any financial support to airlines, including India, Malaysia and Philippines. There is still hope these key Asian countries will step up to the plate. For example, AirAsia expects to secure government loan guarantees in Malaysia and the Philippines, helping to support an overall restructuring that also includes a planned equity sale and renegotiated aircraft lease agreements. Asia's independent low-cost carriers (LCCs) are currently at a disadvantage because thus far the bailout packages by Asian governments have only benefitted full service airlines and their LCC subsidiaries. A few more Asian LCCs could shut down, joining NokScoot, including some of the nine airlines that operate under the AirAsia brand. However, most should be able to survive given their strong presence in domestic markets, which will recover first, and their strong brands. The void from any casualties in Asia's LCC sector will also likely be filled by surviving airlines and start-ups. Mergers and acquisitions are also a possible outcome from the COVID-19 crisis but in the short term these are not likely as airlines are focused on their own survival. In fact, some airline groups have been shedding stakes in overseas airlines rather than using this period to buy new stakes or pursue acquisitions. In Asia there are still several barriers to consolidation, including foreign ownership restrictions. Consolidation would be a healthy outcome globally and particularly in Asia, where several markets were already suffering from overcapacity and irrational competition before the pandemic. However, several airlines in Asia and other regions that were struggling before COVID-19 now have a new lease of life due to government bailouts that would have been harder to secure if it were not for the pandemic. While the bailouts were necessary given the critical role of airlines in the overall economy they distort the playing field and could make it harder for the overall industry to return to profitability. The global airline industry faces a long tough road in the years ahead. Brendan Sobie is the founder of Singapore-based independent aviation consulting and analysis firm Sobie Aviation. He was previously chief analyst for CAPA ' Centre for Aviation.

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled AirAsia shares slide after record quarterly loss. If the article mentions that AirAsia has defaulted recently, respond with 'AFTER'. If the article mentions that AirAsia will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. AirAsia is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. AirAsia is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. AirAsia has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of AirAsia. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

[KUALA LUMPUR] Shares in AirAsia Group fell in morning trade on Tuesday, as analysts lowered earnings forecasts after the Malaysian budget airline group posted its record quarterly loss. The stock fell as much as 6.2 per cent in the first half session of trade. Affin Hwang Capital cut earnings forecasts for 2021 and 2022, expecting a larger net loss this year due to lockdowns in Malaysia in the first quarter, closed borders and longer-than-expected timeframe for the Covid-19 immunisation programme. "We now anticipate AirAsia to report net loss of RM92 million in 2022 due to slower-than-expected recovery in international tourism," analyst Isaac Chow said in his note. AirAsia in a results presentation on its website said it expects a soft first quarter for its Malaysia unit due to lockdowns, but the following quarter could see up to 33 per cent of pre-Covid domestic levels following relaxation on some cross-state tourism. AmInvestment Bank said in its note that it was highly critical for AirAsia to shore up its liquidity quickly given its cash burn rate. The research house said while prospects for the air travel industry and airlines have improved, AirAsia may need to raise more fresh capital, "including potentially a debt-to-equity swap for creditors (that is also highly dilutive to its existing shareholders) to ensure its long-term survival." In its presentation, AirAsia said it reduced its average cash burn by 92 per cent in the last quarter of 2020, partly due to continued support from lessors and banks for deferrals. The airline said ongoing discussions for raising new capital in Indonesia and Philippines were also positive. AirAsia reported a record US$591 million quarterly loss on Monday. AirAsia has been looking to raise up to RM2.5 billion (S$813 million) to weather the pandemic, and said that it expects to secure RM1 billion in loans from three Malaysian banks. REUTERS

NO

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Malaysia's AirAsia shares slide after record quarterly loss. If the article mentions that AirAsia has defaulted recently, respond with 'AFTER'. If the article mentions that AirAsia will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. AirAsia is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. AirAsia is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. AirAsia has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of AirAsia. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

KUALA LUMPUR: Shares in AirAsia Group fell in morning trade on Tuesday (Mar 30), as analysts lowered earnings forecasts after the Malaysian budget airline group posted its record quarterly loss. The stock fell as much as 6.2 per cent in the first half session of trade. Affin Hwang Capital cut earnings forecasts for 2021 and 2022, expecting a larger net loss this year due to lockdowns in Malaysia in the first quarter, closed borders and a longer-than-expected time frame for the COVID-19 immunisation programme. "We now anticipate AirAsia to report net loss of RM92 million (US$22.2 million) in 2022 due to slower-than-expected recovery in international tourism," analyst Isaac Chow said in his note. AirAsia in a results presentation on its website said it expects a soft first quarter for its Malaysia unit due to lockdowns, but the following quarter could see up to 33 per cent of pre-COVID domestic levels following relaxation on some cross-state tourism. AmInvestment Bank said in its note that it was highly critical for AirAsia to shore up its liquidity quickly given its cash burn rate. The research house said that while prospects for the air travel industry and airlines have improved, AirAsia may need to raise more fresh capital, "including potentially a debt-to-equity swap for creditors (that is also highly dilutive to its existing shareholders) to ensure its long-term survival". In its presentation, AirAsia said it reduced its average cash burn by 92 per cent in the last quarter of 2020, partly due to continued support from lessors and banks for deferrals. The airline said ongoing discussions for raising new capital in Indonesia and Philippines were also positive. AirAsia reported a record US$591 million quarterly loss on Monday. AirAsia has been looking to raise up to RM2.5 billion to weather the COVID-19 pandemic, and said that it expects to secure RM1 billion in loans from three Malaysian banks.

NO

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Malaysia's AirAsia X posts record quarterly loss, eighth in a row. If the article mentions that AirAsia has defaulted recently, respond with 'AFTER'. If the article mentions that AirAsia will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. AirAsia is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. AirAsia is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. AirAsia has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of AirAsia. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

KUALA LUMPUR: Malaysian long-haul budget airline AirAsia X Bhd reported a record loss for the first three months of the year and its eighth quarterly loss in a row as the coronavirus pandemic devastated demand for air travel. The airline, an affiliate of AirAsia Group Bhd, on Thursday (May 20) reported a net loss of RM5.67 billion (US$1.37 billion) in January-March, more than 10 times the loss of RM549.7 ringgit seen in the same period last year. The loss was primarily attributable to the impairment of assets, it said in a statement. Revenue for the quarter fell 95.8 per cent to RM38.5 million. AirAsia said it has assessed the recoverability of its assets in light of the COVID-19 pandemic and its restructuring process, and impaired those assets by RM5.28 billion. The airline has been looking to reconstitute 64.15 billion in debt, and said the asset impairment does not impact the restructuring. "Appropriate accounting entries will be made on a successful restructuring that will reflect more appropriately the assets and liabilities based on the final agreed restructuring terms," it said. It also said it remains committed to resuming commercial operations as soon as possible on the successful completion of the restructuring plan and the opening of international borders. The airline has changed its financial year-end from Dec 31 to Jun 30, expecting the outcome of the restructuring to be known then. It said the basis of preparation for its audited financial statements will clear and be of more value to shareholders at that point.

NO

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Asian air travel set for 'V-shaped' recovery: AirAsia. If the article mentions that AirAsia has defaulted recently, respond with 'AFTER'. If the article mentions that AirAsia will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. AirAsia is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. AirAsia is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. AirAsia has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of AirAsia. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

Air travel in Asia is set to make a "V-shaped comeback", budget carrier AirAsia's parent company said Wednesday, as countries ease tough coronavirus curbs that have hammered the industry. /nThe region's aviation sector has been slow to recover, as governments kept restrictions such as quarantines and testing in place far longer than in Europe and the United States. /nBut countries in the Asia-Pacific have been gradually scrapping curbs in recent months, and travel is picking up again./n"We will see a V-shaped comeback," said Colin Currie, a senior executive from Capital A, the parent company of AirAsia, one the region's biggest low-cost airlines./n"We really do see that demand of our customers wanting to travel, and we're very, very optimistic."/nHe was speaking at an event by AirAsia X, a subsidiary of Capital A that flies long-haul, as the airline announced it will add seven new routes by the end of the year./nThese include Kuala Lumpur to London, Dubai and Istanbul. /nAirAsia X currently has six Airbus jets in operation and hopes to have 15 planes in service by year end./nThe airline grounded its planes in 2020 when the pandemic hit, and was forced to undergo a debt restructuring. /nDespite signs of recovery in Asia, there are still some difficult areas, particularly China, where restrictions remain in place as Beijing pursues a strategy of wiping out the virus entirely./nThe COVID-19 pandemic triggered the worst crisis in the aviation industry's history, as borders were closed worldwide.

NO

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled AirAsia's parent company posts profit in Q4 2022; expects China reopening boost. If the article mentions that AirAsia has defaulted recently, respond with 'AFTER'. If the article mentions that AirAsia will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. AirAsia is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. AirAsia is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. AirAsia has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of AirAsia. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

Capital A Berhad, the parent company of Malaysian budget airline AirAsia, returned to profitability in the fourth quarter of last year, benefiting from strong pent-up demand for air travel and said China's reopening would further improve its business.AirAsia said on Tuesday (Feb 28) that it expects 150 of its aircraft to be operational by the end of March, aiming to have its entire fleet in the skies by the end of the third quarter this year. "China's reopening will further boost our aviation business' recovery and our aim is to return to pre-COVID capacity by the year-end," Capital A chief executive Tony Fernandes said in a statement.Airlines including AirAsia recorded a string of losses in the recent past as COVID-19 lockdowns brought the airline industry to a standstill.But carriers are now returning to profitability cashing in on a return in travel appetite.Capital A posted a profit attributable of RM256.2 million (US$57.12 million) for the quarter ended Dec 31, 2022, compared to a loss of RM756.6 million posted a year ago.The budget carrier posted an annual loss attributable of RM2.48 billion which narrowed from RM2.99 billion a year ago. ?? Singapore Airlines, Qantas Airways and Air New Zealand have all posted profits in the latest quarter.Like rivals Malaysia Airlines and Vietnamese budget carrier VietJet Aviation, AirAsia is bracing for an influx of Chinese tourists as COVID-19 restrictions are dismantled.CEO Fernandes said the company was on track to complete its restructuring efforts and aims to resolve its PN17, or "Practice Note 17", status and submit a remedy plan in April.Capital A was in January 2022 classified as a PN17 company by the Malaysian bourse, a tag given to financially distressed firms which can be delisted if they fail to regularise their finances within a set time frame.

NO

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Argentina curbs banks' access to pesos amid growing market turmoil. If the article mentions that Century Bond has defaulted recently, respond with 'AFTER'. If the article mentions that Century Bond will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Century Bond is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Century Bond is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Century Bond has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Century Bond. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

BUENOS AIRES (Reuters) - Argentina's battered bonds and currency were driven still lower on Friday amid downgrades by three credit rating agencies and a new measure the central bank said was designed to 'avoid any lack of money' and safeguard the liquidity of the country's financial system. Some private economists said the policy, which could limit the availability of hard peso currency to financial institutions, looked like a return to capital controls in Latin America's third-largest economy. The central bank has burned through nearly $1 billion in reserves since Wednesday alone, in an effort to prop up the rickety peso. 'Financial entities must get prior authorization from the central bank to distribute their earnings,' the central bank said in a statement. In a follow-up statement, the bank said the measure was aimed at ensuring the liquidity of the financial system, so that depositors can withdraw money when needed. 'In times of greater uncertainty, we seek to increase the liquidity of the system to avoid any lack of money,' it said. Central bank spokesmen were not immediately available for further comment on the measure. 'It can be seen as a capital control because if you cannot take capital out of the country, that would be a measure of restriction,' said Jose Dapena, director of the finance department for University of CEMA in Buenos Aires, referring to the new central bank policy. U.S.-traded shares of financial services company Grupo Supervielle SUPV.K extended steep losses late in the New York session to fall 8.6% while Grupo Financiero Galicia GGAL.O closed 8.9% lower. Banco Macro BMA lost 6.3%. Related Coverage The latest round of market tumult to plague Argentina started with the Aug. 11 primary election, in which business-friendly President Mauricio Macri got soundly thumped by center-left Peronist challenger Alberto Fernandez. The general election, with Fernandez now the clear front-runner, is in late October. 'The central bank is not allowing them to distribute results, that means they cannot use their pesos. This is not a restriction of access to the FX market, but on the availability of pesos,' a source familiar with the central bank plan told Reuters. 'The central bank wants banks to be very well capitalized right now,' added the source, who requested anonymity because he was not authorized to speak to the media. Standard & Poor's triggered automatic selling of Argentine bonds at big pension funds Thursday night when it slashed the country's long-term rating, saying a default was triggered by a government plan announced on Wednesday to extend the maturities of many bonds. That resulted in an overnight 'D' rating on the short-term debt and a 'selective default' for the long-term. S&P on Friday lifted the long-term rating to 'CCC-' and the short-term to 'C'. Credit rating agency Fitch followed after market hours on Friday with a downgrade of Argentine debt to 'Selective Default.' Then came a downgrade from Moody's, citing the new central bank measure and heightened political uncertainty associated with a likely Fernandez victory in October. Risk spreads blew out to levels not seen since 2005 while the local peso currency extended its year-to-date swoon to 36%. Argentina's "Century Bond" maturing in 2117 040114HQ6= briefly traded at a record low below 38 cents on the dollar, according to MarketAxess, showing the kind of write-down markets are now bracing for. The peso closed 2.72% weaker at 59.52 per dollar, extending losses so far this year to about 36%. Over the counter sovereign bonds fell an average 5.5% during the day, traders said. Argentine spreads measuring risk of default versus safe-haven U.S. Treasury paper blew out 261 basis points to 2,533 on Friday, their highest since 2005, according to JP Morgan's Emerging Markets Bond Index Plus index. The central bank sold a total $387 million in reserves in four auctions Friday, aimed at stabilizing the peso. A fifth auction was abandoned due to lack of buyers, traders said. It spent $367 million in interventions on Wednesday and $223 million on Thursday in its effort to defend the peso. Investors in Argentina fear a return of the left to power could herald a new era of heavy government intervention in Latin America's third-largest economy. They also fear the plan to extend maturities will do little more than buy time and fail to prevent a more serious financial crisis further down the line. 'What triggered this week's mess was that local investors lost confidence in the government,' said Roger Horn, executive director and senior emerging market strategist at SMBC Nikko Securities America in New York. 'People are selling what they can because they want to decrease exposure to Argentina. They've already taken losses, they don't see a way forward that is going to restore them, so they're cutting exposure,' Horn said. 'It's a classic capitulation.' Hugh Bronstein, Cassandra Garrison, Eliana Raszewski, Walter Bianchi, Gabriel Burin and Hernan Nessi in Buenos Aires; Rodrigo Campos in New York; Editing by David Gregorio and Tom Brown

NO

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Asia News Briefs. If the article mentions that Rayong Refinery has defaulted recently, respond with 'AFTER'. If the article mentions that Rayong Refinery will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Rayong Refinery is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Rayong Refinery is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Rayong Refinery has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Rayong Refinery. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

Internet-service provider Asia Online said it will lay off 56 employees, or about 6% of its work force in Asia, to reduce costs, the company said. Asia Online said the layoffs followed a "comprehensive management review of its operations' aimed at reducing costs. The company canceled its plan to list on the Nasdaq Stock Market in September, just a month after it submitted a listing application. Asia Online expanded its operations rapidly this year but now "requires a pause to concentrate resources and to ensure sustainable long-term progress," said Edward Roberto, the company's president. The layoffs are the latest in a spate of job cuts in Hong Kong's Internet sector, coming only days after Nasdaq-listed Internet company Chinadotcom Corp. let 40 workers go. Daewoo Motor Co. resumed production Wednesday at its Kunsan car plant, but the South Korean auto maker said its main plant in Bupyong remained closed. Daewoo halted production at the Kunsan plant Tuesday afternoon due to a lack of parts. "Our Kunsan and Changwon factories are operating," said a spokesman at Daewoo Motor. The Bupyong plant has been closed since last Thursday because of a shortage of car parts. The spokesman said he wasn't sure when the Bupyong plant would be able to resume production. The Kunsan factory, located in the south of the country, has an annual capacity of 300,000 vehicles, and makes the Rezzo minivan and Nubira sedan. Daewoo Motor's Changwon plant, which manufactures compact cars, is the company's only factory that is operating normally, the spokesman said. Daewoo Motor filed for court receivership last Friday, after being declared bankrupt three days earlier. Hopewell Holdings Ltd. said it is continuing negotiations with the Indonesian government about an unfinished power plant. The statement comes in response to a media report quoting Hopewell Chairman Gordon Wu saying the government-owned electricity company PT PLN -- or Persero -- has agreed to buy back the failed project from Hopewell for US$200 million. Hopewell made a 4.82 billion Hong Kong dollar (US$618 million) provision in 1998 for investments in the Tanjung Jati B Power Station after the Asian financial crisis forced Indonesia to pull the plug on the project. Hopewell's shares closed 10% higher Tuesday. The report said Hopewell would use the funds to repay debt. But Hopewell in a statement to the Stock Exchange of Hong Kong said negotiations with the Indonesian electricity company are continuing and that "no definitive agreement on settlement has been signed so far." Company officials, including Mr. Wu, couldn't be immediately reached for comment. Tens of thousands of commuters were stranded when union members blockaded a Manila train line to press their claims for severance pay, officials said. After several hours, police were sent to remove the union members, national police chief Gen. Panfilo Lacson said. Train officials were attempting to restore service. At least 13 people were arrested, police said. The train line, owned by the government's Light Rail Transit Authority, carries about 400,000 passengers daily in Manila. In July, police broke up a strike by the union, affiliated with the May One Movement, the country's largest left-wing labor federation, in which workers blockaded tracks on the line and removed equipment. The workers were demanding higher wages and opposing plans by the government to privatize the line, fearing that many workers would be laid off. Allianz Group and Marubeni Corp. will form a joint venture by the end of this year to offer credit insurance to Japanese businesses, company officials said. The pair said they expect annual premium income of 2 billion yen ( $18.6 million) within three years by marketing credit insurance that provides protection against default on companies' receivables. The joint venture, to be capitalized at 140 million yen, is expected to receive a license from the government soon to start the insurance business. Its operations will begin early next year. The Allianz group will have a 60% stake in the joint company, with the balance held by Marubeni. Allianz and Marubeni expect electronic commerce to expand Japan's credit insurance market, which is much smaller than that of Europe. Allianz was among the companies that were exploring a tie-up with Chiyoda Mutual Life Insurance Co. which collapsed in October. Indonesia's economy, as measured by gross domestic product, grew by 5.12% on year in the third quarter as a weak rupiah helped keep exports strong, the central statistics bureau said Wednesday. Economists surveyed had forecast 4.80% GDP growth on year in the third quarter. The bureau placed third-quarter growth at 1.97% compared with the previous quarter, adding that GDP grew by only 0.38% in the second quarter of the year compared with the first quarter. Thai Petrochemical Industry PCL's 6,000 employees at the company's Rayong Refinery are protesting Effective Planners Ltd., who runs the debt-ridden petrochemical conglomerate and its $3.7 billion debt plan on a court mandate, a senior company official told reporters. The Rayong Refinery is still operating, but at 2 p.m. (1:00 a.m EST Wednesday) employees plan to halt work, an official said. Representatives from Effective Planners Ltd. are scheduled to meet the protesting Rayong employees. The protesting employees want Effective Planners to clarify whether they will be laid-off, and demand the debt plan prepared by Effective Planner to be modified, Thai Petrochemical's spokeswoman Patchaneeya Sukcharoen said. Thai Petrochemical creditors are scheduled meet Thursday to vote on the debt restructuring plan, prepared by Effective Planners, which is also disputed by the company's former chief executive officer Prachai Leophairatana. Sales of Japanese-made semiconductor manufacturing equipment grew 58.9% in September from a year earlier to 207.94 billion yen ($1.93 billion), the Semiconductor Equipment Association of Japan said. This marks the 19th consecutive monthly year-on-year rise, the association said, reflecting the chipmakers' drive to increase capital investment due to strong global semiconductor demand. The association said September sales also represent a 51.9% increase from August. In the Japanese market alone, September sales of chip-making equipment rose 21.4% on year to 99.44 billion yen, up 34.0% from August, the industry body said. In addition, the SEAJ said total orders in September for Japanese semiconductor production equipment grew 28.8% from a year ago to 177.73 billion yen, though the figure represents a 9.6% fall from August. Renault SA has decided to resume exports of its cars to Australia some time in the first half of 2001, a move that will involve close collaboration with Nissan Motor Co. Renault, which hasn't sold cars in Australia since 1996, plans to use some of Nissan's 2,000 dealerships but will sell cars under its own brand, said Blaise Bertrand, in charge of Asia-Pacific communications at Renault. Mr. Bertrand said the two auto makers will apply the same strategy they have used in Europe and South America, combining back offices and administration while preserving separate brands. The French auto maker, which made the announcement at the Sydney motor show, will outline details of the plan at the Melbourne motor show next March. -- Compiled from Dow Jones Newswires

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled China Properties defaults on notes worth $226 million. If the article mentions that China Properties Group Ltd has defaulted recently, respond with 'AFTER'. If the article mentions that China Properties Group Ltd will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. China Properties Group Ltd is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. China Properties Group Ltd is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. China Properties Group Ltd has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of China Properties Group Ltd. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

Oct 15 (Reuters) - China Properties Group Ltd said on Friday it had defaulted on notes worth $226 million, failing to make the payment by the maturity date. The property developer said the senior notes matured on Oct. 15 and they will be delisted from foreign bourses.

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled UPDATE 1-China Properties defaults on notes worth $226 million. If the article mentions that China Properties Group Ltd has defaulted recently, respond with 'AFTER'. If the article mentions that China Properties Group Ltd will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. China Properties Group Ltd is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. China Properties Group Ltd is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. China Properties Group Ltd has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of China Properties Group Ltd. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

(Adds details, background) Oct 15 (Reuters) - China Properties Group Ltd said on Friday it had defaulted on notes worth $226 million as it failed to secure funds by the maturity date, joining a list of property developers in the country that are reeling from a debt crisis. The case underscores the impact of China Evergrande Group , which is struggling under $305 billion in debt, on the rest of the high-yield sector as liquidity dries up and sales slow. Earlier this week, Chinese developer Sinic Holdings said it would likely default on bonds worth $250 million. China Properties said it had failed to secure funds by Oct. 15, the maturity date of the notes, due to a 'timing mismatch' and that it would not be able to make repayments until it had sold or refinanced some of its assets. The Hong Kong-headquartered company said its controlling shareholder Wong Sai Chung had assured he would continue to provide support to the firm through the liquidity crisis.

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Evergrande debt woes are manageable, China central bank official says. If the article mentions that China Properties Group Ltd has defaulted recently, respond with 'AFTER'. If the article mentions that China Properties Group Ltd will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. China Properties Group Ltd is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. China Properties Group Ltd is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. China Properties Group Ltd has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of China Properties Group Ltd. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

SHANGHAI, Oct 15 (Reuters) - The spillover effect of China Evergrande Group's debt problems on the banking system is controllable, a central bank official said on Friday, in rare official comments on a liquidity crisis at China's No. 2 developer that has roiled global markets. Chinese authorities are urging Evergrande to step up asset disposals and the resumption of projects, Zou Lan, head of financial markets at the People's Bank of China (PBOC), told a briefing, adding that individual financial institutions did not have highly concentrated exposure to Evergrande. read more "In recent years, this company did not operate and manage itself well. It failed to conduct prudent operations according to changing market conditions, and it blindly diversified and expanded its business," Zou told the briefing in Beijing. Chinese officials and state media have been largely silent on the crisis at Evergrande, which has missed a series of bond interest payments and has $300 billion in debt, making it the world's most indebted developer. Zou also said property firms that have issued bonds overseas should actively fulfil their debt repayment obligations. Evergrande has left its offshore investors in the dark about repayment plans after already missing three rounds of interest payments on its dollar bonds. Zou's comments came as sources told Reuters that Evergrande (3333.HK) CEO Xia Haijun was holding talks in Hong Kong with investment banks and creditors over a possible restructuring and asset sales. read more Xia had been in Hong Kong for more than two months, several sources told Reuters. Xia needed to communicate with foreign banks on loan extensions and repayments, one of the sources said. Joining a list of property developers reeling from the debt crisis, China Properties Group Ltd (1838.HK) said on Friday it had defaulted on notes worth $226 million. Another Chinese developer, Xinyuan Real Estate Co's (XIN.N), avoided a default on a maturing dollar bond on Friday, saying in a Singapore Exchange filing that bondholders had agreed to an offer to accept new bonds and cash in exchange for maturing notes. read more Xinyuan said that holders of more than 90% of the company's $229 million notes due Oct. 15 had agreed to the exchange, which would see it deliver new bonds worth $205.4 million and $19.1 million cash. Xinyuan's 14.5% September 2023 bond crashed nearly 30% on Friday to trade at 58.35 cents, according to data provider Duration Finance. The agreement follows warnings from other developers that they could default on their bonds, while still others have taken steps to delay payments in the wake of Evergrande's troubles. Evergrande, with 1,300 real estate projects in more than 280 cities, missed a third round of interest payments on its international bonds this week. However, in a separate statement filed to the Shenzhen Stock Exchange, Evergrande said it would pay interest coming due on Oct. 19 on a yuan-denominated bond it issued in 2020. At the Friday briefing, Zou said Evergrande should step up asset disposals and the resumption of project building, for which authorities will provide financing support. Some lenders have had 'misunderstandings" about the central bank's debt control policies, causing financial strains for some developers, as some new projects were unable to get loans even after repaying existing loans, Zou said. "This short-term extreme reaction is a normal market phenomenon,' he said. Chinese developers face more than $500 million in coupon payments on their high-yield bonds before the end of this month. Refinitiv data show coupon payments by Kaisa Group Holdings (1638.HK) and Fantasia Holdings (1777.HK) are due this weekend. read more "In some cities, the property prices surged too fast, causing the approval and issuance of personal mortgages to be restrained," Zou said, referring to the first nine months of this year. "Once housing prices stabilise, the supply and demand of mortgages in those cities will be normalized too," he said. Still, Evergrande suffered fresh setbacks on Friday with sources telling Reuters that Chinese state-owned Yuexiu Property (0123.HK) pulled out of a proposed $1.7 billion deal to buy the company's Hong Kong headquarters building over worries about the developer's dire financial situation. read more Evergrande has been scrambling to divest some assets to repay creditors knocking on its doors and the collapse of the talks shows the difficulties it is facing. Adding to its woes, Hong Kong's audit regulator said on Friday it was investigating Evergrande's 2020 accounts and their audit by PwC because it had concerns about the adequacy of reporting on whether it could continue operating as a going concern. read more Evergrande bonds fell following the Reuters report. The company's 8.75% June 2025 bonds slumped more than 6% to trade at a discount of more than 80% from its face value, according to data provider Duration Finance. Apart from Xinyuan, Duration Finance data showed other developers' bonds deepening their rout. Sinic Holdings Group's 10.5% June 2022 bond dived more than 20% to just 12.25 cents, and Ronshine China Holdings' February 2022 bond fell more than 6% to 68.35 cents. Moody's downgraded Risesun Real Estate Development Co Ltd (002146.SZ) to B1/B2, with a negative outlook. Spreads on Chinese high-yield corporate dollar bonds (.MERACYC) touched a fresh record late Thursday evening U.S. time, having nearly tripled since late May, while investment-grade spreads remained near their widest in more than two months (.MERACCG). Worries of contagion have also hit property developers' shares this week. On Friday, an index tracking A-shares in the sector (.CSI000952) gave up small gains to end down 0.1%, lagging a 0.38% gain in the blue-chip index (.CSI300) and taking losses since Tuesday to 4.5%. China has been ramping up property market curbs since late 2020, introducing new measures to closely monitor and control developers' debt levels. But with economic growth cooling and new construction starts slowing, speculation has been rife over whether it will start relaxing those restrictions, as was the case during previous downturns.

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Evergrande contagion may be nearing its peak. If the article mentions that China Properties has defaulted recently, respond with 'AFTER'. If the article mentions that China Properties will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. China Properties is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. China Properties is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. China Properties has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of China Properties. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

HONG KONG, Oct 18 (Reuters Breakingviews) - China Evergrande (3333.HK) boss Hui Ka Yan has just had yet another of his bubbles burst. Last year he suggested in a leaked letter that his property-developing empire was too big to fail. On Friday, though, the country's central bank decided the beleaguered company is a bad apple in an otherwise "healthy" industry. That's too generous, but the regulator is right that the chance of a domestic systemic financial crisis is falling. The message read more from Zou Lan, a senior official at the People's Bank of China is clear for investors: The government is keeping its hands off. Despite urging faster asset disposal to deliver unfinished apartments , Zou defined Evergrande's mistakes as purely operational and dismissed Hui's creditors as "relatively dispersed". That probably came as the result of stress tests that the central bank has been quietly conducting with banks and other financial institutions. Evergrande will, though, cause more pain. Hui is already struggling to offload office buildings read more and other assets without a big haircut. And defaults have started to snowball across the industry. On Friday China Properties joined a dozen others that have defaulted on over 47 billion yuan ($7.3 billion) of bonds this year, per an estimate from CRIC, a Chinese property consultancy. S&P Global last week downgraded two of the bigger players, Greenland (600606.SS) and E-house Enterprise (2048.HK). But for more sanguine players like Longfor (0960.HK), which remains clear of the debt red lines but whose stock has fallen 24% this year, the risk of becoming collateral damage is much lower. Overly tightened credit policies will probably be corrected on the margin, too, as Zou criticised some lenders for misunderstanding the central bank's debt control policies. Smaller, more vulnerable developers remain the weak link. The analogy Zou drew to the shock default of Yongcheng Coal last year and interbank market panic following the Baoshang Bank takeover in 2019 suggests Beijing is willing to stomach some pain for proper deterrence. Chinese property firms have 1.28 trillion yuan of debt due this year, and total bond issuance was 21% lower in the first eight months of the year, according to Beike Research Institute. The relative resilience of the majority of the industry, though, suggests the light at the end of the tunnel is drawing nearer. Follow @ywchen1 on Twitter CONTEXT NEWS - China Evergrande's problems are isolated and not representative of the country's broader real estate industry, Zou Lan, head of financial markets at the People's Bank of China, said at a briefing on Oct. 15. Most companies in the sector are operating steadily and have good financials, he argued. Zou also said that the risk of Evergrande's debt problems spilling over to the financial sector is controllable, as its financial liabilities are less than one-third of total liabilities and each of its many creditors' exposure is limited. - 'Relevant departments' and local governments are carrying out 'de-risking' work at Evergrande based on market-driven principles in accordance with the law, urging it to step up asset disposal efforts, restart project constructions, and safeguard the legitimate rights and interests of home buyers, Zou said. - Some lenders have had 'misunderstandings" about the central bank's debt control policies, causing financial strains for some developers, Zou said. - Chinese state-owned property developer Yuexiu has pulled out of a proposed $1.7 billion deal to buy Evergrande's Hong Kong headquarters over worries that Evergrande's unresolved indebtedness would create complications in completing the transaction smoothly, Reuters reported on Oct. 15 citing sources. ($1 = 6.4364 Chinese yuan renminbi) BreakingviewsReuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time.Sign up for a free trial of our full service at https://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors.

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Chinese Property Slump Extends into September. If the article mentions that China Properties Group has defaulted recently, respond with 'AFTER'. If the article mentions that China Properties Group will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. China Properties Group is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. China Properties Group is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. China Properties Group has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of China Properties Group. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

China's giant housing market slowed substantially in September, official data showed, as the country's debt-saddled developers cut spending and demand from home buyers waned. Monday's data builds on recent reports from individual real-estate companies showing punishing drops in sales. It also underscores how property-market weakness, already evident in lackluster August figures, hasn't abated as the industry enters what is traditionally a much stronger period for home sales. Investments made by property developers fell 3.5% in September compared with last year, according to data released by China's National Bureau of Statistics on Monday. It was the first time property investment had fallen year-over-year after growing quickly since the beginning of the coronavirus pandemic. Home sales by value fell 16.9% in September from a year earlier, while the floor area of new construction projects that were started in the month fell 13.5%. Both measures had already dropped sharply year-over-year in August, falling 19.7% and 17%, respectively. The data paint a bleak picture for China's property market and the many developers that had banked on strong housing sales to help pay off large amounts of borrowings. Global investors have turned bearish on the prospects of Chinese real-estate developers, sending their dollar bond prices to deeply distressed levels. The yield on an ICE BofA index of high-yield bonds from Chinese companies climbed above 23% last week, its highest in more than a decade. 'It's become a lot harder for developers to access financing...at affordable rates, so that's probably going to result in a further pullback in housing starts going forward,' said Julian Evans-Pritchard, senior China economist at Capital Economics. 'I think policy makers are willing to take measures to support housing demand but they're less willing to take measures to support developer-borrowing.' A string of property developers'starting with industry giant China Evergrande Group 'have missed payments on their dollar bonds over the past month, and defaults are rising. Late last week, a smaller developer, China Properties Group Ltd., said it had defaulted on $226 million in three-year notes that matured on Oct. 15. A few days earlier, Sinic Holdings, another Hong Kong-listed Chinese developer, warned it was likely to default on bonds that mature on Oct. 18, after earlier falling behind on some other obligations. Overall, data showed Monday that China's economy grew 4.9% in the third quarter from a year earlier, slowing sharply from the previous quarter's 7.9% growth rate, as power shortages and supply-chain problems added to the impact from Beijing's efforts to rein in the real estate and technology sectors. 'Today's set of data reconfirmed our view that the property slowdown is one of the main drivers of the current China economic slowdown, on the back of financial tightening and property tightening,' said Mo Ji, chief China economist at Fidelity International. 'Chinese policy makers are striking a delicate balance between growth goals and reform goals,' she said, describing the country's housing costs as the government's biggest challenge, next to those of education and healthcare, in its drive to reduce income inequality.

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Chinese Developer Defaults Pile Up as Evergrande Contagion Spreads. If the article mentions that China Properties Group has defaulted recently, respond with 'AFTER'. If the article mentions that China Properties Group will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. China Properties Group is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. China Properties Group is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. China Properties Group has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of China Properties Group. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

HONG KONG'The pain is spreading in the market for Chinese junk bonds. Dollar-bond defaults from Chinese property developers are rising quickly as the country's housing market slumps, and the problem could worsen as a wave of debt from the beleaguered industry comes due in the coming months. Real-estate developers dominate China's international high-yield bond market, making up about 80% of its total $197 billion of debt outstanding, according to Goldman Sachs. The market has already endured its worst selloff in a decade, after property giant China Evergrande Group EGRNF 10.40% skipped some interest payments to dollar bondholders in late September, and smaller rival Fantasia Holdings Group Co. surprised investors by defaulting on debt that matured in early October. Since then, at least four other Chinese developers have either defaulted or asked investors to wait longer for repayment. A 30-day grace period for Evergrande to pay international bondholders, meanwhile, runs out this weekend, and investors are expecting the company to default on close to $20 billion in outstanding dollar debt. The average yield on an ICE BofA index of Chinese high-yield corporate bonds stood at 20.3% Wednesday, after topping 23% last week. At the height of the selloff on Oct. 13, the average price of bonds in the index had plunged 21% in just one month'its worst performance since October 2011. 'Global investors have been offloading high-yield bonds issued by Chinese developers because of the concerns that they have, rightly, about the future of those companies and their capability to repay debts,' said Jing Sima, China strategist at BCA Research. 'The lack of response from Chinese policy makers definitely adds to that concern,' she added. How do you think the Evergrande crisis will continue to affect the Chinese economy? Join the conversation below. While property bond prices have stabilized somewhat in recent days, many remain at distressed levels. The extreme market dislocation raises the risk of a vicious cycle, in which companies can't refinance coming debts because borrowing costs are too high, leading to more defaults and further hits to investors' and home buyers' confidence. Some investors say they are now monitoring every pending interest and principal payment in the sector, and asking chief financial officers if their companies will pay back debt as planned. 'We now need to track every single coupon and upcoming maturity,' said Jim Veneau, head of fixed income for Asia at AXA Investment Managers. On Wednesday evening, Chinese developer Modern Land (China) Co. , which has a $250 million bond coming due on Oct. 25, said it is facing liquidity issues and is looking to hire a financial adviser. It scrapped an earlier plan to delay repaying most of the bond by three months. Over the past week, China Properties Group Ltd. defaulted on $226 million in three-year notes that matured on Oct. 15. And on Tuesday, S&P Global Ratings downgraded Sinic Holdings (Group) Co. to a 'selective default' rating, after the Shanghai-headquartered company failed to repay $250 million of bonds that came due a day earlier. Xinyuan Real Estate Co. , another cash-strapped developer, swapped more than $200 million in dollar bonds that were scheduled to mature on Oct. 15 with debt that matures in two years, in what is known as a distressed debt exchange. Developers are skipping debt payments to preserve cash since it will be difficult to refinance upcoming maturities in the international bond markets if yields remain elevated, said Rachana Mehta, co-head of regional fixed income at Maybank Asset Management. ''We now need to track every single coupon and upcoming maturity.'' Investors are also concerned that Evergrande, Fantasia and other cash-strapped Chinese developers would give priority to paying their suppliers and creditors in mainland China, leaving less money for their offshore bondholders. The refinancing pressure is likely to intensify, with more than $6 billion of dollar debt maturing in January, according to Goldman Sachs'up from $2.2 billion this month, and less than $2 billion in each of November and December. At the same time, contracted sales at many developers have already fallen by more than 20% or 30% on an annual basis, and this slowdown is likely to continue. In recent days, Moody's Investors Service downgraded its speculative-grade ratings on numerous developers and cut its outlook on others to negative. The credit-assessment company said it expects many developers' contracted sales to fall over the next six to 12 months, due to weaker consumer sentiment amid tight funding conditions. Many traders and investors are watching what happens with Kaisa Group Holdings Ltd. , which defaulted in 2015. One of its bonds that matures in November 2024 was bid at 30 cents on the dollar Thursday, according to Tradeweb. On Monday, Moody's downgraded Kaisa to B2, saying the company has up to $3.2 billion of offshore debt coming due by the end of next year. The figure includes bonds that become puttable, meaning investors are able to demand the company buys them back before their maturity date. To be sure, bonds from some stronger companies such as Country Garden Holdings Co. and Logan Group Co. have regained some ground in recent days, after China's central bank said any risks of financial spillover from Evergrande were controllable. And some companies are making payments on schedule. Shimao Group Holdings Ltd. said last week that it had paid back an $820 million bond at maturity as planned. Still, sentiment remains fragile. 'Investors are not looking for bargains yet because the selloff has become pretty damaging,' said AXA's Mr. Veneau. 'There's probably more of a mind-set of assessing the damage.' Real estate is a major driver of the Chinese economy and financial distress among developers is likely to add to households' reluctance to buy property, alongside other concerns such as difficulties obtaining mortgages and doubts that prices will keep rising. Chinese buyers often put large sums of money down upfront for as-yet unfinished projects. 'The true concern is that this will negatively impact economic growth, as it affects home-buyer appetite to buy homes,' said Tracy Chen, a portfolio manager at Brandywine Global. To turn more positive on the sector, Ms. Mehta of Maybank Asset Management said she was waiting for the market for new debt issuance to reopen for developers, or for signs of government support to emerge. These could come at next month's full gathering, or plenum, of the central committee of China's Communist Party.

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Chinese Developer Modern Land Fails to Repay $250 Million U.S. Dollar Bond. If the article mentions that China Properties Group has defaulted recently, respond with 'AFTER'. If the article mentions that China Properties Group will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. China Properties Group is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. China Properties Group is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. China Properties Group has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of China Properties Group. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

Modern Land (China) Co. 1107 -1.30% , a 21-year-old developer that focuses on green projects, failed to repay a $250 million dollar bond that matured Monday, adding to a string of missed payments by Chinese real-estate companies. In a statement Tuesday, the Beijing-based company attributed the missed payment to an unexpected cash crunch caused by 'factors including the macroeconomic environment, the real-estate industry environment and the Covid-19 pandemic.' Modern Land didn't say if the failure to repay the bond would immediately constitute an event of default, or whether it would trigger cross-default provisions on other debts. Credit analysts at Lucror Analytics called the incident a default in a note to clients. Many highly indebted Chinese developers that have outstanding U.S. dollar bonds are struggling to adapt to an era of tighter credit and falling home sales. A steep selloff in the market for Chinese junk bonds has made it impossible for some real-estate companies to refinance their maturing debt by issuing new dollar bonds. Total contracted sales at China's 100 largest developers fell 36% year-over-year in September, according to CRIC, a Chinese data provider. Last week, struggling sector heavyweight China Evergrande Group unexpectedly avoided default by paying $83.5 million of interest to international bondholders shortly before a 30-day grace period ran out. Over the weekend, Evergrande said that work on some of its halted projects had resumed. But other smaller rivals have failed to repay investors as promised, including Fantasia Holdings Group Co. , China Properties Group Ltd. and Sinic Holdings (Group) Co. Modern Land had previously planned to buy back some of the $250 million dollar bond'which carried a 12.85% coupon'and push out the maturity date on the rest. It scrapped that plan last week, saying it continued to experience liquidity problems and had decided the move wouldn't be in the best interests of the company or other stakeholders, including bond investors. On Tuesday, the developer reiterated that it was working with lawyers from Sidley Austin and was seeking to hire financial advisers to help develop a plan 'taking into account the interests of onshore and offshore stakeholders.' More Chinese developers are likely to default and restructure their debts, said Daniel Anderson, managing partner of law firm Ropes & Gray LLP's Hong Kong office. Evergrande's difficulties, and a slowdown in home sales, meant developers could no longer simply raise funds from new bond sales to fix liquidity issues, Mr. Anderson said. 'It's very difficult for a Chinese real-estate developer to go to the market these days and say, 'Please buy my bonds.'' Modern Land was founded in 2000 and listed in Hong Kong in 2013. It has carved a niche for itself by focusing on green technology and says its dwellings consume only one-third of the energy used by normal residential buildings. In 2016, it became the first Chinese property developer to sell an international green bond. Last year, the company reported the equivalent of $6.5 billion in contracted sales of properties. Chairman Zhang Lei is its majority shareholder, with a stake of about 66% as of end-December, according to the company's annual report. Earlier this month, Modern Land said Mr. Zhang and the company's president, Zhang Peng, would together loan it a total of 800 million yuan, the equivalent of about $125 million, within the next two to three months. The company has four other dollar bonds with a combined face value of about $1.1 billion due between 2022 and 2024, according to Tradeweb. It reported total borrowings of about 28.75 billion yuan as of end-June, the equivalent of about $4.5 billion, including loans and bonds. The company's 11.95% bonds due 2024 were quoted at 25 cents on the dollar as of Thursday, according to the most recent prices available on Tradeweb. The company said Oct. 4 that contracted sales for September of properties and car-parking spaces totaled about 3.56 billion yuan, or the equivalent of about $558 million. That was about 22% lower than in the year-earlier period.

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Evergrande makes coupon payment before Friday deadline -sources. If the article mentions that China Properties Group Ltd has defaulted recently, respond with 'AFTER'. If the article mentions that China Properties Group Ltd will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. China Properties Group Ltd is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. China Properties Group Ltd is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. China Properties Group Ltd has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of China Properties Group Ltd. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

HONG KONG, Oct 29 (Reuters) - Developer China Evergrande Group has made an interest payment for an offshore bond before a grace period expired on Friday, two people with direct knowledge of the matter said, narrowly averting a catastrophic default for the second time in a week. Evergrande (3333.HK), once China's top-selling developer, is reeling under more than $300 billion in liabilities, fuelling worries about the impact of its fate on the world's second-largest economy as well as on global markets. read more The property developer, which staved off a default last week by securing $83.5 million for the last-minute payment of interest on a bond, needed to make $47.5 million in coupon payments to bondholders by Friday. A failure to pay by the Friday deadline would have triggered cross-defaults on all of the company's $19 billion worth of bonds in international capital markets, in what would have been the world's second-largest emerging market corporate debt default. Evergrande did not respond to Reuters' request for comment. The people declined to be identified due to the sensitivity of the matter. Reuters was not able to determine the source of the funds used to make the interest payments. Bloomberg News reported earlier this week that Chinese authorities had urged Evergrande's founder, Hui Ka Yan, to pay the developer's debts out of his personal wealth. Shares of Evergrande gave up early gains to fall about 0.8% by late morning on Friday, versus a 0.3% decline in the Hang Seng Index (.HSI). The Hang Seng Mainland Properties Index (.HSMPI) fell about 0.9%, while an index of developers' mainland A-shares (.CSI000952) dropped 3.6%. Prices of the developer's bonds jumped higher on Friday, with its 11.5% January 2023 bond surging more than 9%, and its 12% January 2024 bond up nearly 8% on the day, data from Duration Finance showed. That still left them trading at discounts of more than 75% from their face value, with the 2023 bond yielding nearly 190%. One bondholder said he maintained a negative outlook for the developer despite it making the coupon payment. "I only think they are buying time at this point," the bondholder said. Evergrande missed coupon payments totalling nearly $280 million on its dollar bonds on Sept. 23, Sept. 29 and Oct. 11, beginning 30-day grace periods for each. It still has nearly $338 million in other offshore coupon payments coming due in November and December. The New York Times earlier reported that the developer made an interest payment, citing a person speaking on condition of anonymity. "Evergrande has tried its best to solve liquidity problems, but it's a little bit difficult to gather enough capital to pay all the debt," said Cliff Zhao, chief strategist at China Construction Bank International in Hong Kong. "I think there (will) be some negotiations between Evergrande and its lenders, so some sort of haircut is still possible. The market still needs some time to digest and to price this in." DEBT CRISIS Evergrande's woes have snowballed for months and its dwindling resources set against its vast liabilities have wiped out 80% of its value, leading some analysts to consider default at some point inevitable. read more Even as Evergrande secures funds to make payments, other Chinese developers whose fortunes have been hit by market concerns over Evergrande's debt crisis have slid into formal default. Fantasia Holdings Group Co Ltd (1777.HK), Sinic Holdings (Group) Co Ltd (2103.HK), China Properties Group Ltd (1838.HK) and Modern Land (China) Co Ltd (1107.HK) have all defaulted on dollar debt obligations this month. Other developers with significant dollar debt have proposed extending offshore bond maturities or undertaking debt restructuring in a meeting with regulators, sources have said. read more In a meeting with developers this week, China's National Development and Reform Commission (NDRC) and the State Administration for Foreign Exchange told developers facing large offshore debt maturities to evaluate repayment risk and report difficulties. The NDRC also implored developers to meet offshore debt obligations, and maintain their reputations and market order. read more "Selective defaults in the offshore market are emphatically not acceptable for the authorities, and the NDRC clarification this week should reassure offshore investors that they will be treated fairly alongside onshore investors," DBS strategist Wei Liang Chang said in a client note. Even developers who have not defaulted have seen their share and bond prices walloped. On Friday, Chinese Estates Holdings Ltd (0127.HK) said it would book an aggregate loss of HK$1.36 billion in the current fiscal year from the sale of all of its bonds issued by peer Kaisa Group Holdings Ltd (1638.HK). Concerns over the systemic impact of a default by Evergrande have widened spreads on Chinese high-yield dollar debt (.MERACYC) to record levels as investors demand higher risk premiums. Investor worries have also kept the cost of insuring against default on China's sovereign debt elevated. That cost earlier this month touched its highest level since the height of the pandemic in 2020. Founded in Guangzhou in 1996, Evergrande epitomised a freewheeling era of borrowing and building. But that business model has been scuttled by hundreds of new rules designed to curb developers' debt frenzy and promote affordable housing. Any prospect of Evergrande's demise raises questions over the fate of more than 1,300 real estate projects it has ongoing in some 280 cities. Bank exposure to developers is also extensive. A leaked 2020 document, branded fake by Evergrande but taken seriously by analysts, showed the developer's liabilities extended to more than 128 banks and over 121 non-banking institutions.

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Evergrande Averts Default Again by Making Second Late Payment. If the article mentions that China Properties Group has defaulted recently, respond with 'AFTER'. If the article mentions that China Properties Group will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. China Properties Group is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. China Properties Group is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. China Properties Group has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of China Properties Group. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

China Evergrande Group EGRNF -3.23% avoided default for a second time by making an overdue interest payment on dollar bonds shortly before the end of a 30-day grace period, people familiar with the matter said. Evergrande, one of China's largest real-estate developers, made a coupon payment that was originally due on Sept. 29, the people said. Evergrande was on the hook to pay about $45 million of interest on $951 million of bonds, which have a 9.5% coupon and mature in 2024, according to CreditSights research. Last week, Evergrande unexpectedly made a $83.5 million payment on another set of dollar bonds. By making these last-minute payments, Evergrande is buying time to organize its finances and negotiate with creditors. If it had let either grace period run out, that would likely have spiraled into the biggest corporate default in Asia, by enabling creditors to declare defaults on some of Evergrande's other debts. Evergrande is China's most indebted developer, with the equivalent of more than $300 billion in total liabilities as of the end of June, including some $89 billion in interest-bearing debt. China's developers enjoyed years of rapid, debt-fueled growth, in the process running up obligations of more than $5 trillion. But many are now buckling as new home sales slow and regulators restrict their access to credit. Evergrande's crisis and a string of defaults by smaller developers, such as China Properties Group Ltd., Fantasia Holdings Group Co., Modern Land (China) Co. and Sinic Holdings (Group) Co., have hammered the prices of bonds issued by financially weaker players. That has sent bond yields, which move inversely to prices, soaring. The result is that developers are all but shut out of international bond markets'further increasing default risks, as many have hefty short-term refinancing needs. Some firms have been able to raise funds through asset sales. On Friday, Sunac China Holdings Ltd. said it sold about $554 million worth of shares in KE Holdings Inc., the U.S.-listed Chinese online real-estate brokerage firm. Sunac said it would use the proceeds from the sales, conducted between June and late October, for general working capital. For its part, Evergrande has been trying to raise cash through sales of shareholdings and an office block in Hong Kong. It sold part of its holding in a Chinese bank, but last week called off a $2.6 billion deal to sell a majority stake in its Evergrande Property Services Group Ltd. subsidiary. Evergrande's $4.7 billion of 8.75% bonds due 2025'its largest outstanding international debt issue'were bid at 22.75 cents on the dollar by late Friday morning in Hong Kong, according to Tradeweb. That price indicates deep skepticism among investors that they will be repaid in full, though it is modestly higher than a low point reached earlier this month, when the bonds hit a closing low of 19.25 cents.

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Chinese Property Developer Kaisa Proposes $400 Million Debt Swap. If the article mentions that China Properties Group has defaulted recently, respond with 'AFTER'. If the article mentions that China Properties Group will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. China Properties Group is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. China Properties Group is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. China Properties Group has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of China Properties Group. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

Kaisa Group Holdings Ltd., which in 2015 became one of the first Chinese developers to default abroad, warned it risked reneging on its international debts again unless creditors agreed to a $400 million bond swap. The Shenzhen-based company is one of the sector's biggest offshore borrowers after China Evergrande Group, EGRNF -3.82% with about $10.9 billion of dollar bonds outstanding as of end-June. Government efforts to control developers' mounting debts, falling home sales and the crisis at Evergrande have shaken investor confidence. That has pushed down bond prices and effectively shut the market for new offshore debt issuance, making it even harder for property companies to raise the cash they need to repay coming debts. 'Persistent tightening governmental policy, multiple credit events and deteriorating consumer sentiment have resulted in temporary shut-down of various refinancing venues for the sector and put enormous pressure on our short-term liquidity,' Kaisa said Thursday. Kaisa is seeking to swap $400 million of notes due Dec. 7 for new bonds paying the same annual 6.5% coupon, which will mature in June 2023. Investors will get $25 in cash for every $1,000 in face value of notes they exchange. If it can't conclude the exchange, Kaisa warned it may not be able to repay the bonds at maturity on Dec. 7, and said it could consider an 'alternative debt restructuring exercise.' The Hong Kong-listed developer said it was already in a 30-day grace period for more than $88 million of coupon payments due earlier this month, which it hadn't paid on time. It didn't specify whether there was any such grace period for repayment of principal on its maturing bonds. In a separate filing late Wednesday, Kaisa said it had implemented a repayment plan for about 1.1 billion yuan, the equivalent of about $172 million, of wealth products 'issued for and on behalf' of the company and its subsidiaries. Principal repayments will be staggered over the next 2 ?? years. It is still negotiating with holders of other wealth products, it added. Kaisa's shares, which had been halted since Nov. 5, resumed trading and jumped 18% by midafternoon Thursday in Hong Kong. A Kaisa bond due 2024 was bid at 33 cents on the dollar, according to Tradeweb. A string of developers have defaulted on dollar debt in recent months, including China Properties Group Ltd., Fantasia Holdings Group Co. , Modern Land (China) Co., and Sinic Holdings (Group) Co. Some others such as Yango Group Co. and Xinyuan Real Estate Co. have persuaded investors to exchange bonds for longer-dated debts. Rating firms often view such swaps as distressed debt exchanges, which they see as a form of default. Distressed exchanges typically help a company avoid a formal default while switching investors into less financially attractive securities. Kaisa's credit ratings have already been slashed to levels that indicate a high risk of default. S&P Global Ratings lowered Kaisa's credit rating to CCC- two weeks ago, saying the developer's liquidity and refinancing ability were deteriorating severely. Fitch Ratings and Moody's Investors Service have assigned Kaisa even lower ratings, of C and Ca, respectively. Kaisa said earlier this month that it plans to speed up asset disposals to meet investor obligations, adding that it would try to sell assets in Shenzhen, Shanghai and other places.

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Chinese Developers Kaisa, Aoyuan Face Growing Debt Challenges. If the article mentions that China Properties Group has defaulted recently, respond with 'AFTER'. If the article mentions that China Properties Group will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. China Properties Group is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. China Properties Group is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. China Properties Group has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of China Properties Group. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

Two Chinese developers sunk deeper into financial distress, with Kaisa Group Holdings Ltd. 1638 -8.82% failing to pull off a bond swap that would have bought it more time to repay creditors, and lenders calling in loans from China Aoyuan Group Ltd. 3883 -11.88% after credit downgrades. Hong Kong-listed shares in both companies, which have already dropped steeply this year, fell further on Friday, with Kaisa's stock losing nearly 9% and Aoyuan falling 12%. Shenzhen-based Kaisa is one of the Chinese property sector's biggest offshore borrowers, after China Evergrande Group, with about $10.9 billion of dollar bonds outstanding as of the end of June. In 2015, it became one of the first Chinese developers to default abroad. Kaisa had proposed exchanging $400 million of debt due Dec. 7 for new notes due in June 2023. On Friday, it said some investors had tendered their bonds, but it was unable to reach the minimum 95% threshold it had set for the deal to proceed. 'There is no guarantee that the company will be able to meet the repayment obligations under the existing notes at maturity,' Kaisa said in a filing. 'If the company is unable to repay the existing notes at its maturity or agree with its holders on alternative arrangements, it would have a material adverse effect on the group's financial condition.' Kaisa said it was in discussions with some holders of the bonds that mature next week. It said it would explore solutions to its liquidity problem, including renewing and extending borrowings and selling assets. Soon after the proposed exchange was announced, Nomura credit analyst Iris Chen wrote in a note to clients that the proposal didn't solve Kaisa's liquidity problems, while the terms didn't offer enough incentive for bondholders to exchange. Meanwhile, creditors asked Aoyuan to repay about $651 million in principal after recent credit-rating downgrades, the company said in a regulatory filing late Thursday in Hong Kong. The three major international credit-rating companies have all slashed their assessment of Aoyuan to highly speculative, triple-C levels. Aoyuan said it hadn't repaid those creditors yet, or agreed on alternative payment arrangements. It warned that if it failed to repay the debt, that could trigger a 'possible acceleration' of some other offshore debt, giving more lenders the right to demand repayment. Aoyuan has $688 million of public debt due next month and nearly $450 million more that either comes due or is puttable by investors, meaning they can require the company to buy it back, by next September. Efforts by Beijing to control developers' leverage, a slowdown in home sales and the crisis at Evergrande have rattled investors. As prices for outstanding debt have fallen, the market for new dollar-bond sales has all but shut'making it tough for property companies to refinance obligations that are coming due. Several developers have defaulted on dollar debt in recent months, including China Properties Group Ltd. and Fantasia Holdings Group Co. , while others, such as Yango Group Co. and Xinyuan Real Estate Co. , have carried out successful debt swaps. Ratings firms often classify these as distressed-debt exchanges, meaning they help companies avoid formal defaults but switch investors into less financially attractive securities. Hong Kong-listed Kaisa is also nearing the end of a 30-day grace period for more than $88 million of coupon payments that were due last month but that it failed to pay on time. It didn't specify whether there was any such grace period for repayment of principal on its maturing bonds. A Kaisa bond due 2024 was bid at about 36.5 cents on the dollar on Friday morning in Hong Kong, according to Tradeweb. Like Aoyuan, Kaisa's credit ratings have already been slashed to levels that indicate a high risk of default. A 5.88% Aoyuan bond due in 2027 was bid at 20.3 cents on the dollar, Tradeweb showed. Kaisa said last month that it plans to speed up asset disposals to meet investor obligations, adding that it would try to sell assets in Shenzhen, Shanghai and other places.

AFTER

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled The Quiet Death of a Notorious Harlem Drug Kingpin. If the article mentions that Times has defaulted recently, respond with 'AFTER'. If the article mentions that Times will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Times is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Times is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Times has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Times. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

I am not the guy you'd expect to know a 1970s heroin kingpin, but I knew Nicky Barnes pretty well. While the notorious Harlem drug trafficker died in 2012, the public only learned of his death this week via a report in the New York Times. When I met Nicky in 2004, he was in the U.S. Federal Witness Protection Program and going by the name Clayton 'Clay' Williams. I wanted to publish his memoir, but getting to him took more than a year of pestering the U.S. Marshals Service. Finally, with marshals monitoring the call, I was allowed to speak to him on the phone. Not long after that I went out to meet him in Minneapolis. A chiseled, compact man'a bantam rooster with a strut to match'Nicky was then 70. He still did push-ups and pull-ups to stay in shape, a habit he acquired at the federal penitentiary in Marion, Ill. He ate healthy food, drank only beer, had a car, and liked to go ice fishing. His girlfriend had no idea about his past life. Nicky was 44 when he was sent away, 48 when he decided to cooperate, and 66 when he finally walked out of prison a not-exactly-free man. He worked at Walmart, and it frustrated him. When it came to sales, distribution and product display, he felt he could do a much better job. He might have been right. But he was a damn good storyteller and had a lot of tales to tell. We started work on what would become his book, 'Mr. Untouchable: The Rise, Fall and Resurrection of Heroin's Teflon Don.' The first problem was the contract. It couldn't be with Nicky Barnes, because he no longer existed. It could be with Clayton Williams, but then it'd be too dangerous to keep the executed contract in our office. Lots of bad guys still wanted Nicky dead, and he no longer had federal protection. Contrary to what the Times has reported, by 2005 Nicky had left the Witness Protection Program. The U.S. Marshals cut him loose when he decided to publish a book. If anything surprised me about Nicky, it was the anger, decades later, that still ran hot regarding the betrayal by his prot??g??, Guy Fisher. Nicky dedicated 'Mr. Untouchable' to Mr. Fisher: 'You disrespected me. You betrayed me. See where that got you? I want you to read every word of my story. And when you finish the last page, I want you to look up, see where I put you and ask yourself, was it worth it?' Mr. Fisher is still serving out a life sentence on racketeering, drug and murder convictions based in part on Nicky's testimony. Nicky was a character out of Shakespeare. The man only wanted a family but ended up triggering a titanic and depraved tragedy. Nicky's childhood on the streets led him to crave the intimacy and trust of a family unit. So he tried to build one in the form of seven drug-dealing 'brothers' known as 'the Council,' which by the mid-1970s ruled much of the East Coast heroin trade. When Nicky learned these 'family' bonds were no more than a naive delusion, he retaliated against them all, putting dozens into prison, many for life. The book came out in 2007, and I last spoke to him in 2011. He wanted to know when someone would make a Hollywood movie about him. It bothered him that he'd been portrayed as a minor character in 'American Gangster,' the 2007 biopic starring Denzel Washington as Nicky's competitor Frank Lucas. Nicky must have died not long after our phone call. He said nothing of his cancer. I tried calling Nicky/Clay over the years, but his phone number was disconnected. I figured he might have finally made it to Arizona. He hated Minneapolis: 'Much too cold most of the year and almost everyone is white.' I figured if I really had to get in touch, I would go through the marshals again. It would be a chore, but I knew the drill. Back in the day, Nicky wasn't a 'good' guy, either personally or professionally. He required that all of his girlfriends learn to 'stand and hold.' This meant they had to learn to walk with his loaded pistol under their skirts so that the weapon wouldn't be found by the cops. A former heroin addict himself, Nicky knew the horrors of addiction but rationalized away any remorse for destroying tens of thousands of lives. Indeed, he relied on his addict's knowledge to make his product the best on the street. No matter how generous he was with people in Harlem'holiday turkeys and hospital bills'the money he spread around was taken from other members of the community who'd poisoned and killed themselves with his product. So why did his death attract so much attention? Supposedly, no minority makes it in America until they first make it in crime. In the 1970s, as blacks emerged as leaders in politics, society, and culture, Nicky Barnes did the same, only for African-American organized crime. Members of the Italian mafia'whose methods Nicky studied while in Greenhaven Prison alongside 'Crazy Joe' Gallo'became both rivals and partners. Only now, under Nicky, the nation's first black godfather dictated to them. With an unfinished grammar-school education, Nicky had few opportunities for legitimate business success. Instead, he played the hand he was dealt. If Nicky had grown up in a different place and at a different time, he'd likely have gone in an different direction as an entrepreneur. My guess is he'd have done OK. Mr. Stone is a book publisher and film producer.

NO

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled FirstFT: Today?€?s top stories. If the article mentions that Times has defaulted recently, respond with 'AFTER'. If the article mentions that Times will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Times is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Times is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Times has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Times. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

President Donald Trump touted his record on economic issues affecting black communities on Tuesday. In a tweet, the president said he had done 'more' for African-Americans 'than any president since Abraham Lincoln', citing a scheme to foster investment in low-income neighbourhoods, the passage of criminal justice reform, and low unemployment, poverty and crime. But the reality is that African-American households are still disproportionately reliant on low-wage labour, under-represented in business and equity ownership, and unable to share in many of the gains happening elsewhere. That is on top of endemic concerns about lack of access to quality healthcare and police brutality and racial injustice, issues acutely highlighted by the coronavirus pandemic and the recent killing of George Floyd, an unarmed black man, while in police custody. Data from the US Census Bureau show the median household income for a black family in 2018 was $41,361, having risen by 3.4 per cent over the previous decade. That compared with the median income of $70,642 for non-Hispanic white families in 2018, which had risen by 8.8 per cent since the 2008 crisis. The Brookings Institution, a Washington-based think-tank, concluded in a recent report on racial inequality that the US does not 'afford equality of opportunity to all its citizens'. These disparities are helping to fuel some of the worst civil unrest seen in America since the 1960s, which continued on Tuesday. In Houston, the city where Floyd grew up, 60,000 people marched as the backlash against the president grew, even drawing rebuke from a former top military officer and some Republicans. Meanwhile, public health officials are worried the demonstrations could lead to a spike in new Covid cases. (FT) Sweden will investigate its controversial no-lockdown policy after Denmark and Norway opened borders to each other, but excluded their Scandinavian neighbour. Scientists are studying links between coronavirus and high altitude, in places like La Paz in Bolivia which has suffered relatively few fatalities. Australia is facing its first recession in almost 30 years after suffering a first-quarter contraction. South Korea unveiled its third supplementary budget. The 'Japan model' brought coronavirus to heel without a lockdown or widespread testing. China delayed releasing data to the WHO, according to recordings of internal meetings. Keir Starmer has urged Boris Johnson to 'get a grip' of the coronavirus crisis. In an interview the leader of the UK's opposition Labour party accused the prime minister of 'winging it'. The French returned on Tuesday to caf??s and restaurants that had been closed for 11 weeks of coronavirus lockdown during one of the warmest springs on record. (FT, Guardian, AP) Follow our country outbreak tracker and our live coverage here. Zoom rides WFH trend The video conferencing service was confirmed as one of the biggest corporate winners from the coronavirus crisis, reporting that revenues soared 169 per cent to $328m in the three months to the end of April. Microsoft hopes its Teams software can prove a competitor. (FT, WSJ) Facebook buys stake in Indonesian ride-hailing start-up The social media network has gained a foothold in south-east Asia's largest economy with an investment in Gojek. Facebook did not disclose the size of its investment but people with knowledge of the matter said it was in the low hundred million dollars and takes Gojek's current fundraising round to more than $3bn. (FT) Warner Music delays IPO The music label that is home to hip hop artists such as Cardi B and Kodak Black postponed what is expected to be this year's largest IPO to honour the Black Lives Matter movement. Blackout Tuesday, where people share images of black squares in solidarity with black victims of police violence, was widely observed on social media. (FT, The Verge) UK welcomes 'Hong Kong exodus' Boris Johnson has offered nearly 3m Hong Kong residents extended visa-free access to Britain and the chance to obtain citizenship. In a newspaper column, the UK prime minister said if China imposed a new national security law on Hong Kong the UK would have no choice but to implement one of the 'biggest changes in our visa system in British history'. Japan's largest investment bank Nomura, meanwhile, is 'seriously' examining its Greater China strategy. (Times, FT) Trade tensions The Trump administration has announced an investigation into digital services taxes that could lead to new punitive tariffs targeting the UK, Italy, Brazil, Indonesia and the EU. Google intervened after a service promising to delete Chinese apps received 4.7m downloads in India. For more, subscribe to our Trade Secrets newsletter. (FT) Wall Street turns bearish on the dollar Strategists at Goldman Sachs, JPMorgan and Citigroup have warned this week the US currency's long rally could finally be over. Meanwhile, yields on long-dated US government debt have risen to their highest level since March. (FT) GIP and Brookfield close in on pipeline deal Global Infrastructure Partners and Brookfield Asset Management are close to taking a stake in the Abu Dhabi National Oil Company's natural gas pipelines, people familiar with the matter said. Under the deal the investors would take a 49 per cent share worth more than $15bn including debt. (FT) Japan's gender reckoning Hundreds of Japanese companies face a mass shaming during June's shareholder meeting season as investors prepare to vote against the all-male leadership boards. Here's a look at three women shaking up wealth management. (FT) Argentina extends restructuring deadline again IMF officials say Argentina can still improve its restructuring offer on $65bn of debt with foreign creditors as it continues negotiations after slipping into default last month. (FT) Earnings Campbell Soup is to report a rise in third-quarter profits linked to a coronavirus-driven boost in sales of its products, including soups and the company's biscuits and snacks such as Pepperidge Farm. American Eagle Outfitters, meanwhile, is set to report a first-quarter loss, as the coronavirus led the apparel retailer to close stores. (FT) Are we heading into another Depression? Covid-19 lockdowns have led to the largest rises in unemployment since the 1930s. The FT asked six leading economists and market analysts what to expect ' and what might be done to avert turmoil. (FT) Inside Walmart Mary Pat Tifft, Walmart associate and member of United for Respect, has spent 32 years working at her store. From products to colleagues to customers she's seen a lot of changes over the years, but 'a management culture that refuses to listen to employees on the front lines,' has remained, she writes. (FT) Washington turns to Five Eyes When the US looked for allies to issue an international rebuke to Beijing's decision to impose national security legislation on Hong Kong, it turned to members of the Five Eyes intelligence alliance rather than the G7, writes Katrina Manson. Hong Kong's justice system is worth preserving, writes Beijing bureau chief Tom Mitchell. (FT) EU rises to meet Covid-19 crisis Angela Merkel understands that Europe could shatter if it fails to rise to the crisis, Martin Wolf writes. By agreeing a radical new financial plan with Emmanuel Macron, the German chancellor has transformed the EU's possibilities. (FT) The business of tear gas Who supplies the gas that's being used by US police? Two of the largest US producers are owned by private equity firms ' which in this case, have been atypically quiet about their holdings. 'Non-lethal' anti-protest weapons can cause serious harm. (Axios, Wired) Lockdown baby boom? Despite early predictions of a baby boom, it seems that during lockdown we were less eager than imagined to jump into bed. A latter-day Rip Van Winkle has re-emerged after missing 75 coronavirus news cycles, Boris Johnson's hospitalisation and the sourdough craze. (FT, NYT) Wish I were there Baracoa is a country town at the far-eastern end of Cuba, almost 900 kilometres from Havana. It is steeped in sweet small-town nostalgia that seems to filter down through the coconut palms like aromatic dust, writes Stanley Stewart. This is the latest of an occasional series featuring travel writers who tell a story of a place they yearn to revisit. (FT) How do we prevent a second wave of coronavirus? FT science writer Anjana Ahuja explains the science behind governments' strategies to ease lockdown restrictions, while allowing economies to reopen. (FT)

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The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Markets Now - Tuesday 4th August 2020. If the article mentions that Times has defaulted recently, respond with 'AFTER'. If the article mentions that Times will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Times is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Times is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Times has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Times. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

Remember BP's last big pivot? The one where it rebranded around the slogan Beyond Petroleum to usher in a low carbon future? Well, here's the thing. Beyond Petroleum wasn't pitched in the first instance as an environmental manifesto. It was mostly about groceries. BP hosted the press conference for its July 2000 relaunch at a petrol station near Atlanta. The FT's report on the day describes how BP had made 'its most aggressive move yet into the broader retail sector with a global corporate makeover that includes a new logo and a revamped, high-technology approach to future service stations.' The NYT does a similar treatment packed with anachronistic detail ('customers using the Paris station, for example, will be able to find foie gras'), while the WSJ's reading is even more literal: BP Is Pushing: Beyond Petroleum --- Redesign Seeks to Boost Sales of Other Products --- New Filling Stations Feature Internet Kiosks and Gourmet Coffee Will BP Amoco PLC become the Starbucks or Virgin Airlines of gasoline retailing? That's the question on the minds of brand watchers as the U.K. energy giant rolls out a snazzy redesign of more than 23,000 of its filling stations world-wide today. Starbucks and Virgin redefined coffee and music stores by essentially branding the experience, not the product. Enter BP Amoco, now the largest gasoline retailer in the world with some 29,000 stations, which is making the boldest attempt yet by an oil company to try to steer the focus of the traditional filling station to everything but gasoline. Nearly all of the station changes are designed to pump up non-gasoline sales and get people inside the convenience store. "The point is that BP, at its retail sites, will be selling . . . a lot more than gasoline," said Roddy Kennedy, a BP spokesman. Excitingly, the WSJ goes on to describe how Beyond Petroleum means BP 'will be the first major oil company to embrace the use of the Internet in its filling stations'. (Lord Browne was a non-exec at Intel between 1997 and 2006): Internet kiosks -- offered free of charge -- will allow motorists to get directions, weather and view headlines, though full Internet surfing won't be allowed. Customers can print out the map information or download it via transmitters to Palm Pilots. Outside, people can order sandwiches or drinks from color-touch screens on newly designed pumps with Internet connections. How much of BP's latest pivot will have the same relevance by 2025 as map transmitters for Palm Pilots had by 2005? Second-quarter results from BP this morning come with a long, bitty and quite ambitious list of goals that has the shape everyone expected (less from oil, more from renewables) but avoids being a prisoner to specifics. There's a tenfold increase in low-carbon investment by 2030, by which time oil and gas production will be down 40 per cent. There's no foie gras. A very short summary of the main points is provided by Jefferies: It will reduce oil and gas production by 1 mbd but increase renewable power capacity to 50 GW from 2 GW by 2030. Low carbon energy investment will increase by 10x to $5b/yr, but total capex including inorganic will be held to $14-16b/yr. BP is targeting $25b of divestiture proceeds by 2025 as it reshapes its portfolio. The rebased dividend of $0.0525/sh (50% cut) will be supplemented by share repurchases of at least 60% of surplus cash once net debt is reduced to $35b ($41b at 2Q) As is normal with oil majors, the consensus bore no relation whatsoever to BP's results. Upstream losses were narrower than expected, possibly, depending on where the preannounced exploration writeoffs are placed. Downstream profits were more than three times the forecast but Rosneft, corporate costs and tax were all worse. Debt's down because of BP's recent $12bn hybrid bond issue, which it's booking as equity. Headline numbers missed consensus by around 20 per cent both at an operating and net level if you look at adjusted income, which it seems most people haven't as the shares are up nearly 8 per cent. Barclays is positive, saying it enjoys a meaningful pivot to a dynamism scenario: The dividend cut at 50% was greater than the 30% we were anticipating, but it comes alongside a commitment to meaningfully pivot the company to a lower carbon future with the investment plans in this area more ambitious and the implied cashflow higher, quicker than the base case we out-lined in our report BP: Build Back Better (01/07/2020) and is much closer to our dynamism scenario. Given that the shares still offer a 6% dividend yield and our consistent view that financial markets will incentivise low carbon investments, the changes being made by BP should see the shares re-rate ' if they can deliver proof of concept. There are a lot of big numbers being presented today ' a doubling of customer interactions, a 50GW renewables ambition by 2030 and a 10% share of hydrogen in core markets. Proving that it can deliver profitable growth, rather than just setting an ambition for it will be the next key step for BP. We rate the stock Overweight with a 400p/sh price target. And JP Morgan Cazenove says that while it can't hope to forecast BP on a quarterly basis, its 2025 predictions were bang on: Following recent discussions with investors . . . we believe this announcement should be welcomed so long as the 'why' can be evidenced through a clear energy transition message that demonstrates the cash saving is being used to accelerate a shift to a lower carbon and more profitable energy business. Taken together with a robust Q2 (Adj. net loss $6.68bn, including $6.5bn of exploration write-offs) this should drive resilient share price performance today (stock is up 6% as we write) as investors look through a necessary 'clearing of the decks' ahead of the September CMD and focus on a transformed strategy to 2025 led by the new CEO Bernard Looney. BP remains our top pick in the sector and we reiterate our OW. 'OilCo' to 'NewCo' - Strategy: i) Hydrocarbon business to shrink and be high-graded/value focused. As outlined in our recent deepdive, BP has delivered a radical shift in core O&G strategy (leaner, lower capex intensity, value/FCF mandate). Upstream oil and gas production is expected to reduce from 2.6mboe/d in 2019 to around 1.5mboe/d (a far more significant cut vs JPMe 2.5mboe/d); and refining throughput is expected to fall from 1.7mb/d in 2019 to around 1.2mb/d (vs JPMe 1.4mb/d). In addition, BP will not seek further exploration in countries where it does not already have upstream activities (the company also highlights its stake in Rosneft as a fundamental part of BP's broader portfolio).ii) Shift underpinned by active portfolio management. Having completed the original target of $15bn of announced divestments a year early with the petchems sale to INEOS, BP is now targeting $25bn of divestment proceeds between 2H 2020 and 2025 (vs JPMe $23bn ' including INEOS/Alaska). iii) Low Carbon buildout. BP will increase low carbon investment to around $4bn by 2025 (8x the current $500m), and $5bn by 2030. This compares to a JPM estimate of $3bn by 2025. Net renewable generating capacity is expected to grow from 2.5GW in 2019 to c50GW by 2030, vs JPMe 40GW. iv) Net zero ambition includes... Emissions from operations 30-35% lower by 2030, carbon intensity of products BP sells lower by more than 15% by 2030 (in-line with JPMe). 'OilCo' to 'NewCo' - Fiscal frame: i) Cash return (DPS/buyback upside) and shareholder value. The quarterly dividend has been reset to (a JPMe) $5.25c/sh, with an intention this will remain fixed i.e. there won't be a progressive element. This is supplemented by buybacks equivalent to at least 60% of surplus cash flow contingent on net debt (including hybrids) going below $35bn while maintaining a strong investment grade credit rating. ii) Capex. BP expects to maintain annual net capex (organic + inorganic) in the range of $14-16bn to 2025; keeping within the lower end of the $13-15bn range until net debt has been reduced to $35bn ($40.9bn end 2Q20). This is broadly in-line with JPMe $15bn pa 2021-25, c$14bn pa 2026-30. iii) Returns/Breakeven. BP aims to reach a 12-14% ROACE by 2025 at $50-60//bbl 2020 real (2025 JPMe 12.3% at $60 Brent), and the company guides to a 2021-25 'balance point' of c$40 Brent (in-line with JPMe). Before leaving oils we should note that Andrew Garthwaite and his Credit Suisse strategy team are sellers of European energy in their latest portfolio rejig. Pharma too. Switch to utilities, they reckon. Here's page one: Macro: The key driver from here, in our view, is not PMIs (which have already had most of their recovery), but the euro (which we now think can rise to $1.25 by year-end, up from our previous expectation of $1.20), and the fall in the real cost of debt. Utilities are the most domestically-exposed sector, and the most leveraged, and thus stand to benefit most from both trends. By contrast, pharma is the biggest dollar earner and the oil price is dollar-denominated. Upgrade European utilities to overweight (a value sector with emerging growth): from benchmark, as: 1) the sector no longer looks disrupted. Renewables-focused names are now 50% of sector market cap (vs fossil fuels at 20%). Electric vehicles could boost electricity demand by 10%, and hydrogen could supplement gas. 2) Utilities are the clear winner in Europe from the 'E' of ESG. According to the IMF, CO2 prices need to rise to $75/tonne to achieve the Paris Climate Accord target, and the sector is now correlated positively with CO2 prices. Wind is now economic without subsidies against gas, and the IEA expects wind capacity to rise 20-fold by 2040. ESG continues to attract huge inflows. 3) Valuation: the FCF yield for renewables on maintenance capex is c11%. P/E relatives are at levels from which the sector historically has outperformed 80% of the time. CPI-linked utilities (e.g. UK water) should have re-rated more given the fall in index-linked bond yields. 4) Governments will spend more on renewables/utility infrastructure as the multiplier on GDP is up to 3x in a recession (i.e. an investment of $1 delivers an increase in GDP of $3). 5) Other macro factors: 50% of market cap is from peripheral Europe, and peripheral spreads remain controlled. Utilities might in the short term be a bit more cyclical (as CO2 emissions rise in an upturn and customer defaults fall), but offer more longer-term stability as they become less reliant on coal/gas to set the power price and the EU Emissions Scheme reduces excess CO2 by 24% a year. Outperform-rated exposure includes Enel, EDP (60% renewables) and E.ON. We are also overweight US utilities. Downgrade European pharma to underweight: i) The pharma sector outperforms if PMIs fall, but it is discounting a PMI of 45 (0% GDP growth) vs 56 currently; ii) pricing looks unsustainable (with branded drug prices in the US 50% above those in Europe when the US government now accounts for c45% of spend, and at a time of record fiscal deficits). President Trump's proposals (if implemented) could take 30% off EPS, according to our pharma team; iii) the last two times Democrats gained control of both the presidency and Congress, the pharma sector traded on 14% and 20% relative PE discounts (cf to 8% now) and stayed at low levels for 10-20 months. Currently, the probability of the Democrats winning control of the Senate stands at 63% (according to PredictIt); iv) the sector is more technically disrupted than many investors realise; and v) net consensus buy recommendations are at a 10-year high. Downgrade European energy to underweight: i) At $60pb, the FCF yield of the sector is 10.8%, below that of mining (15% on 2021 spot prices), utilities and half that of coal; ii) ESG and disruption (IEA believes that oil demand needs to fall c35% from pre-virus levels to meet Paris climate accord targets) means this sector ought to be cheaper. Renewables are just 9% of capex; iii) It is hard to see the oil price rising above its average of $64pb given US shale and OPEC 9Mbd of spare capacity; iv) the tactical drivers are problematic (oil has moved in line with ISM new orders, which is at its peak; positioning is mid-range and revenues are dollar-denominated). OMV is rated Underperform. Much further down the market, there's M&AAA. The ever-excellent Dom Walsh at the Times stood up a rumour doing the rounds last week that AA might return to private equity ownership in order to fix some of the problems created between 2004 and 2014 when it was under private equity ownership. A Centerbridge/TowerBrook Capital Partners consortium, as well as Platinum Equity Advisors and Warburg Pincus are all talking about possible cash offers for the 'entire issued and to be issued share capital', AA said this morning. The PUSU's September 1. The first thing to note is that they wouldn't need much upfront cash: a near 13 per cent gain at pixel gives AA a market cap of ??174m. The second, very important thing to note is AA's accompanying statement talking of a 'range of refinancing options including the possibility of raising new equity', because it 'requires a significant amount of new capital in order to reduce the Group's indebtedness and to fund future growth'. AA has ??2.65bn of net debt, ??913m of which falls due within the next two years, which is mostly at unflippable YTMs. Finding any value whatsoever in AA's equity is a real challenge and, while the inevitable refinancing might involve some form of take private, it's not usually in the nature of PE firms to throw scraps to stub shareholders unless there's no option. Here's Barclays: The AA could be run more effectively as a private company than a public company, we believe. Though the business has some attractive features to public markets (highly resilient, high margin, barriers to entry), its ability to de-lever is severely hindered by the size of its debt profile and FCF-to-equity is at risk of being eroded further by refinancing at higher rates. This cash constraint is in stark contrast to the CEO's ambitions to make the AA more relevant to all UK car drivers, rather than just B2C members. Any new owner of the AA would need to invest heavily in new avenues of growth for the business, in our view. The current capital structure prevents the AA from doing that in any meaningful way. It is difficult to comment on what PE could bid for the equity component. The equity is worth only c5% of the total EV, so it will come down to the specifics of what re-financing structure each party is prepared to accept and the level of new equity injected. The 40p price suggested by The Times is 60% higher than its last close price but implies a value of 8.2x FY21e EV/EBITDA, which is only 0.2x higher than the current 8x valuation. In the 6m prior to Covid-19 the shares traded between 45-60p and, from recent trading updates, it seems the impact on EBITDA this year should be minimal and the return to membership stabilisation / modest growth merely delayed by a year. Reprising its 2018 work, Barclays notes that the size of the cash call required to 'have a meaningful impact on leverage would be too restrictive' and 'make-whole payments on outstanding notes would transfer much of the funds raised to credit holders.' It estimates that for 2022 leverage to move from 7.1 to 4-5, AA needs between ??750m and ??1.1bn pre fees. That'd be nearly 4bn new shares, versus 634m outstanding. It also highlights make-whole charges including more than ??80m for paying off 2022 early: An equity raise under the current debt structure would offer little for existing shareholders, in our view. The AA could continue as it is; it probably could refinance the A & B notes, but it's limited FCFE could render it un-investable to most potential shareholders and its cash constraints would not be in the interest of any stakeholders. A substantial debt restructuring seems inevitable therefore and perhaps returning to private equity ownership is the AA's best remaining option. Over in France we had news late Monday that Natixis has said goodbye to CEO Fran??ois Riahi after only two years. He is replaced by Nicolas Namias of BPCE, the co-operative bank that's Natixis's majority shareholder. As per the FT overnight: Last month, the Financial Times reported that BPCE had explored the idea but the parent bank then denied that it intended to file a tender offer. Mr Riahi disagreed with the plan, say people familiar with his thinking, which was supported by Laurent Mignon, who heads BPCE. Mr Namias was very clear about this on this morning's post-results conference call. You can tell how clear he's being by the number of times he says 'clear': The facts are quite simple. I think that there were rumour in the press and less than two hours afterwards we released a press release which was very clear, stating that the group did not intend to file a draft tender offer on the shares. So actually just one rumour, and the position has been very clear. So the group position is clear. And my position is clear, my [job] with Natixis as CEO of Natixis is just to create value for all my shareholders. All of them. And that's my sole mandate. And therefore, I don't have to comment any rumours, and the group has answered very clearly to that rumours. A small point of inclarity involves whether BPCE had been planning to file a draft tender offer before the FT report forced a rethink. It would be interesting to know, for example, if BPCE had been in the later stages of putting together the buyout plan with advice from Rothschild, JPMorgan, the boutique bank d'Angelin & Co and corporate lawyers Darrois Villey Maillot Brochier. It'd be interesting also to know if Natixis had set up an internal strategy committee to examine a potential offer, then split off into a second adhoc committee to weigh up a price in the region of ???3.50 a share, having been approached formally by BPCE on the second Wednesday of July. These are all small points of inclarity, as we say, though perhaps they will become less small over the next six to nine months. Jefferies upgrades Natixis to 'buy': 2Q20 results ' the short view. The company reported a 2Q20 net loss of -???57m, in line with consensus of -???62m but below JEFe of +???97m. Versus consensus, revenues missed (3% below) but this was more than offset by better costs (5% better) while provisions were in line. By division, AWM was in line, but stronger AuM and stronger net inflows bode well for outlook. CIB missed on lower EQ revenues, while Insurance & Corporate Center beat. Payments were line. The CET1 ratio was 11.2% (consensus & JEFe 10.9%) and was even at 11.6% pro forma, per Natixis' calculation. Cost of risk guidance for FY20 was maintained. Activity was described as bouncing back across all businesses. 2021 targets are to be released with Q3 results on 5 Nov, with a new strategic plan to be unveiled in June '21. #1: The worst is over (2Q20 marks the trough). We think 2Q20 revenues mark the trough, with particularly weak revenues in Equities and Asset Management. We expect revenues to recover from here. We also think 2Q20 provisions mark the peak ' with Natixis guidance for provisions FY20 reiterated after an updated sensitivity analysis, we think the worst is over. Last, we think the 2Q20 capital ratio at 11.2% marks the trough and we expect a recovery from 3Q20 (on better earnings, lower Market RWA, mainly). #2: Mgmt change offers optionality. We expect the new CEO to tackle the profitability and risk profile issues of CIB (the main reasons for our cautious stance so far). Also, while it's not our base case, we cannot rule out further changes, including to group structure, with the CEO change. This could offer further optionality and upside risk to Natixis shares. #3: Dividend potential is attractive. We reflect in our forecasts the risk that there could be some M&A, capital destruction, or ECB limitations. With the Q2 capital beat, we increase our dividend forecasts. We expect a flat dividend per share of 33c for each of 2020-22E, corresponding to 16% yield per year, or a cumulative 48% of today's market cap. We expect the dividend ban to be removed by the ECB in January '21 (if no new crisis). We update our forecasts but leave 2021-22 EPS close to unchanged (-1% and +2%, respectively). Our 2021-22 forecasts are 17% and 10% above company-compiled consensus for 2021-22. Natixis is trading at 7.4x and 0.54x PTBV 2021E for 7.1% ROTE (our estimates). Elsewhere in sellside, BT's on a tear after Berenberg turns positive. ' Thinking one year ahead: Sentiment towards BT is on its knees, leading the share price to be the worst in the telecoms sector year-to-date. Looking one year ahead, BT will have just reported Q1 2021/22 results which should show revenue and EBITDA growth, including mid-single-digit growth in Openreach. With Openreach's capex/depreciation at c140%, its mean capital employed is growing (now ??14.1bn but should be higher in a year) and with an ability to earn returns above WACC, we believe delivering mid-single-digit growth will strengthen investor belief that Openreach's valuation could approach ??20bn, underpinning BT's valuation. BT's investment case should also de-risk in other ways over the next year - a pension agreement with similar payments to the current ??907m pa plan (with possible upside from an asset-backed contribution); Premier League rights should be renewed for less than the current ??325m pa; and 5G spectrum should be secured for less than ??1bn. BT trades on 2021/22E 5.8x P/E and a 7.9% dividend yield. Given where sentiment should recover to over the next year, that represents an opportunity, so we upgrade to Buy.' Pain is significant, but somewhat temporary: Returning to today, COVID-19 has hurt BT in four areas: 1) Openreach went further than other incumbents, ceasing in-home engineering work from March to May; 2) BT Sport suffered, due to event postponements and BT offering bill credits; 3) Enterprise's wholesale and SME segments form c12% of BT's revenue and are being hit by macro weakness; and 4) the pension deficit is sensitive to real gilt yields. However, the first two of these are temporary, with in-home engineering now resumed and sporting fixtures restarted.' Not our "usual" Buy: We have previously stated a preference for "whatever weather winners", without significant exposure to externalities. BT is not in this category. However, given its significant underperformance and scope for improved sentiment over the next year, we make an exception. Specifically, we recognise BT's exposure to real gilt yields and the risk from using Huawei as a supplier. On real gilt yields, the triennial pension review priced on 30 June, at which time we believe the deficit was c??9bn, meaning that near-term volatility is now less relevant, the next review not pricing until June 2023. On Huawei, the 5G risk is now known, given the recent government ruling, albeit the consultation on fixed networks remains.' Punished for investing: On the main multiples that telecom investors look at, capex is only viewed as a "bad" thing, ignoring the potential for good IRR projects. On these, BT trades broadly in line, on 2021/22E 15x EV/OpFCF and 5.9% normalised EFCF yield (the sector: 14x and 6.6% respectively). However, on metrics that smooth out investment, like P/E, BT looks very cheap, on 6x P/E (sector 15x). Our price target remains 130p. ' Updates follow, influenced or otherwise by requests and complaints in the comment box. A number of AV Telegram group chats are also available.

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The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled All the president?€?s debts: to whom Donald Trump owes money. If the article mentions that Times has defaulted recently, respond with 'AFTER'. If the article mentions that Times will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Times is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Times is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Times has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Times. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

These are tough times in the real estate market. The Covid-19 crisis has hit asset values, particularly commercial real estate in cities such as New York. Investors holding debt with upcoming maturities are preparing for tricky negotiations with their debtors. The negotiations will be trickier if the debtor is the president of the United States. Virtually all of Donald Trump's debt ' there is at least $1.1bn of it, according to his government financial disclosures and other documents ' is backed by real estate, mostly linked to a small number of buildings and golf courses that form the core of the Trump business empire. About $900m of that debt will come due in Mr Trump's second term, should he win the November 3 presidential election. On paper, Mr Trump is not particularly levered: his net worth has been estimated at $2.5bn by Forbes. But the economy is still on a precarious footing, and if his debts come under strain, he could play hardball with his creditors, as he has in the past. The situation is made more pressing for the US president because his primary source of income in recent years ' his work on television ' 'is drying up', according to an investigation by The New York Times. Citing the president's tax filings, the Times also said much of that income was invested in golf courses that are money losers. So while the president is asset-rich, it is unclear how much liquidity he has access to. The Trump Organization declined to comment. The president's creditors can be broken into five groups. Mr Trump owns 30 per cent of 1290 Avenue of the Americas in New York City and 555 California Street in San Francisco, giving him a pro-rata share of the $1.5bn debt on the two buildings, which comes due over the next two years. The debt is owed by the partnership, not Mr Trump himself, but changes to the value of the debt, or any default, would directly affect his equity value in the buildings. The loan on 1290 Avenue of the Americas was initially made by Deutsche Bank, UBS, Goldman Sachs and the state-owned Bank of China, but they sold it into the bond market in 2012, as a commercial mortgage-backed security. The mortgage on 555 California Street is held by US insurers Met Life and Pacific Life, the companies said. It expires next September, according to filings from Vornado.* California Street is a 1.8m square foot office complex, and while the income from the property was down 5 per cent in the second quarter of this year, it is 99 per cent occupied, according to filings from Vornado. 1290 is a 2.1m sq ft office and retail tower in Midtown Manhattan; Vornado's latest filings do not provide up-to-date occupancy figures for it. The value of each building has probably taken a hit during the Covid-19 crisis. Office real estate prices have fallen 5 per cent and 13 per cent from a year ago in San Francisco and New York, respectively, according to Green Street, a real estate research group. The banks that originated these mortgages sold them to a CMBS trust, bundling them with other loans and transforming them into tradable debt securities. A servicer is responsible for collecting payments from borrowers. Should borrowers fail to make a payment, a special servicer steps in to get the borrower paying again or foreclose. It is these debt collectors that could be crucial should Mr Trump's properties fall into arrears. In total, there are four Trump properties, all in New York, split across six CMBS deals, according to data from Trepp. Most are office buildings and condominiums. The largest is a $100m loan on Trump Tower, at 725 Fifth Avenue, which accounts for just over 10 per cent of a 2012 deal packaged by Wells Fargo. Most of the Trump loans are small enough that they are not the driving force behind the CMBS's performance. All the properties are up to date on their payments, according to data from Trepp. There has been little apparent impact on occupancy rates since the Covid-19 crisis began. However, one loan ' the $6.5m mortgage on the Trump International Hotel at 1 Central Park West, New York ' has been flagged as being at risk after income on the property dropped dramatically. The property has two tenants, a parking garage and the now-closed Triomphe Restaurant. Should the property slip further, it will be passed to its special servicer, Midland Loan Services, part of PNC. Midland declined to comment. Mr Trump's biggest bank lender has financed his hotels in Chicago and Washington, and his Miami golf resort. According to Mr Trump's tax returns, disclosed by The New York Times, both National Doral in Miami and the International Hotel in Washington have generated big losses. The Doral suffered $162m in losses between 2012 and 2018, and the Washington hotel lost $55.5m between 2016, when it opened, and 2018. All of the loans are between $5m and $25m. Most do not mature within the next four years. Two of them are mortgages on Trump family properties, in the New York suburbs and in Palm Beach, Florida; two are on Trump golf courses in New Jersey and Washington, DC; and one, which matures this year, is on a residential tower in Midtown Manhattan. The New York apartment market has experienced a 17 per cent price decline this year, according to Green Street. This debt is mysterious. The trust is a corporation owned by DJT Holdings LLC ' that is, Donald J Trump. Mr Trump appears to owe the money to himself. Asked about this unusual arrangement by The New York Times in 2016, Mr Trump said: 'I have the mortgage. That is all there is. Very simple. I am the bank.' But he is the debtor, too, and it is not a typical mortgage; it is a 'springing loan', meaning it only comes due under specific conditions ' typically a credit event such as a decline in credit rating. It has been suggested that this arrangement could be part of a tax avoidance strategy. Additional reporting by Laura Noonan in New York *This story has been amended to reflect post-publication reporting on the creditors on the loans on 1290 Avenue of the Americas in New York and 555 California Street in San Francisco In the countdown to the 2020 election, stay on top of the big campaign issues with our newsletter on US power and politics with columnists Rana Foroohar and Edward Luce. Sign up here

NO

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Inside London?€?s Docklands: 40 years of ambition, politics and financial wrangling. If the article mentions that Times has defaulted recently, respond with 'AFTER'. If the article mentions that Times will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Times is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Times is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Times has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Times. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

In 1981, in the grip of what in retrospect I realise must have been a premature midlife crisis, I sold my three-bedroom south London semi for ??65,000 and moved into a loft in Wapping. I left my Habitat kitchen and the stained-glass window depicting a galleon over the front door behind and moved into Metropolitan Wharf, a 19th-century Thames-side warehouse with 2,000 square feet of agoraphobia-inducing, wide-open raw space. It was big enough for an indoor bike ride. Strictly speaking, my three-year, non-residential warehouse leaseprohibited me from living there. So I built a box in one corner to hide theevidence of illegal habitation ' in case of any unannounced visits from the landlord ' installed a shower and hoped for the best. I'd spent the previous summer in an artist's studio in Tribeca, New York, and liked the idea of finding something similar in London, where loft living was not yet the phenomenon that attracted the attention of estate agents. It was still a precarious way of life for working artists that offered little security. The warehouses of Wapping, still smelling faintly of spices, fitted the part. Metropolitan Wharf stood out. Its woodwork had been painted pillar-box red to distract from the crumbling brickwork. Its top floor, with the river view, had once been occupied by a colony of architects, including a youthful David Chipperfield. There was a specialist dealer in Dr Who artefacts on the floor below and a music-equipment hire business above me, with an earnest co-operative growing mung beans in the basement. This was the year that the Royal Docks, the last of London's upstream docks, closed; the final act in a process of continuous decline ever since the East India Docks had shut down in 1967, triggered by the invention of the shipping container. There was now a full seven miles of continuous dereliction all the way from Tower Bridge to Beckton. The ships that once clustered around the wharves and the 25,000 jobs that went with them evaporated, leaving nothing but mirror-smooth basins, disturbed only by the occasional arc of a bird taking flight. In Wapping, on still summer nights, you could walk to the Pier Head along deserted cobbled streets and experience the scent of the Thames and glimpses of a full moon over Tower Bridge through the haze hanging above the dark and silent river. When Michael Heseltine, then environment secretary, embarked on a massive experiment in 1981 by taking the area out of the hands of local government, it wasn't just London's docks that were dying. The capital itself had been haemorrhaging people for half a century. At 6.7m, London's population was the lowest it had been since before the first world war, 2m fewer than at its peak. Tower Hamlets, Southwark and Newham were stripped of their planning powers in the 5,100 acres placed under the control of the London Dockland Development Corporation (LDDC). Heseltine appointed Reg Ward, who arrived from running Irvine new town in Scotland, as the LDDC's chief executive. Ward had an ??80m-a-year budget with which to attract private investment into the area, and a barrage of incentives to offer. He established the Isle of Dogs Enterprise Zone with no land tax, no training levies, no planning restrictions, a 100 per cent tax write-off on capital costs and a 10-year tax holiday. The Enterprise Zone itself was limited to a cluster of sites around the three West India dock basins on the Isle of Dogs, but the LDDC's domain stretched from London Bridge in the west to the Beckton sewage farm in the east. Most of its territory was north of the river in Tower Hamlets and Newham, but there was also a riverfront fringe in Bermondsey, dropping south to Surrey Wharfs. The supremely pragmatic Ward claimed not to have a master plan, but took decisions bit by bit, so as to create 'a plan that might only make sense in hindsight', he told The Times in 1986. The best Ward and his team could envisage in the early years was suburban-style private house building and low-rise industrial sheds. That was the Docklands I moved into. Heseltine recently told me: 'If I had made a speech then about what we were planning to do about London's Docklands, predicting everything that has happened there ' Canary Wharf, the Dome, the Exhibition Centre, the Olympics, the high-speed rail link, London City airport ' they would have sent the men in white coats and had me locked up.' If I had made a speech then predicting everything that has happened there they would have sent the men in white coats and had me locked up The response from the local authorities ' and Ken Livingstone's soon-to-be-abolished Greater London Council ' to what they took to be an assault on local democracy was furious. The local authorities mostly refused to deal with the LDDC. And both sides spent lavishly on propaganda billboards that populated the gap sites between the corrugated iron fencing and the empty buildings. 'It will feel like Venice and work like New York,' declared the LDDC. The GLC response was to warn: 'Big money is moving in. Don't let it push out local people.' Despite the protests, Ward ploughed on. He funded the building of the Docklands Light Railway (DLR) to bring people into the area. An airport followed in the Royal Docks. And then one day in February 1985, something extraordinary happened. Michael von Clemm, who combined being chair of the Credit Suisse First Boston investment bank in London with a role on the board of Le Gavrocherestaurant, was invited down to Canary Wharf for lunch by the LDDC. The Roux brothers wanted to invest in a new cold store in the area. Von Clemm, who also maintained a parallel career as an anthropologist at Oxford and played an important part in establishing the Eurobond market, had the insight to realise that Canary Wharf's tax incentives and lack of red tape could be used to build skyscrapers as well as sheds. Which is why three years after that lunch, I found myself on the floating gin palace that Olympia & York, a Canadian property company owned by the Reichmann brothers, chartered to ship journalists down the Thames to watch Margaret Thatcher, the prime minister, unveil its scheme for Canary Wharf. She wore a Prince of Wales check suit jacket with improbably cantilevered shoulder pads. The bar on the boat had a whole table full of portable telephones charging for the Reichmann entourage. It all felt eerily like an out-take from The Long Good Friday, which starred Bob Hoskins as an East End villain trying to go legitimate by developing the docks with American money. Getting this far had been a white-knuckle ride. Von Clemm fundedthe flamboyant American developer G Ware Travelstead to plan a vast office scheme for Canary Wharf. Arthur May, a New York architect, designed three 60-storey office towers using a book on Hawksmoor churches that he kept by his desk for reference. But von Clemm moved on to Merrill Lynch, and Travelstead's scheme was unfundable. By this time, the LDDC could not afford to see Canary Wharf's redevelopment fail. Christopher Benson, the corporation's chair, called Paul Reichmann to persuade him to take over the project. Heseltine relishes his memory of watching a famously non-interventionist prime minister joining the effort. She spoke to Reichmann personally, promised to fund the Jubilee line extension of the London Underground and even offered to move civil servants into offices there. What really attracted Olympia & York was a simple calculation. In 1980, Tokyo had 400m sq ft of prime office space; New York had 300m sq ft; but London had just 160m sq ft. Because the City of London's planners ruled out high-rise buildings, insisted on keeping the existing street pattern and preferred new buildings constructed behind existing facades, when the financial Big Bang in 1986 ended the Bank of England's insistence that banks stay in easy walking distance, Canary Wharf looked a natural alternative. But since the City of London was wily enough to have seen off every threat to its existence from Wat Tyler to King Charles I and the Great Fire of 1666, the City Corporation executed a handbrake turn in planning policy. It flooded the market with office consents. Olympia & York struggled, and was eventually pushed into bankruptcy. George Iacobescu, the engineer who had been brought in from Canada to oversee construction for the Reichmanns, once told me that he had spent his first day in London walking all the way from his hotel to Canary Wharf to see for himself just how much of a problem they would have attracting tenants. Battery Park, which the Reichmanns built in New York, is just 15 minutes' walk from Wall Street. Canary Wharf is 4 miles from the Bank of England. 'Why does it have to be so tall?' the Prince of Wales once inquired of Cesar Pelli, architect of the original Canary Wharf tower. The answer, which Pelli was too polite to give, was obvious. Canary Wharf needed an unmissable signpost. Pelli's svelte, postmodern tower, with its steel skin designed to reflect changing London skies, initially proved hard to fill. It became a kind of vertical Fleet Street, with The Telegraph, The Independent and The Mirror taking floors at bargain rates. Some have since moved on. In 1992, Olympia & York went bust, owing $20bn. It took Paul Reichmann three years to raise the money to buy the development back from the banks, and he began building more towers, a process that has continued under successive owners ever since. Why does it have to be so tall?' the Prince of Wales once inquired of Cesar Pelli, architect of the original Canary Wharf tower The Economist reports that Canary Wharf accounts for 67,000 finance sector jobs, putting it ahead of Frankfurt as a banking centre. And it's no longer an office monoculture. Count in the hotels, shops and restaurants, and Canary Wharf employs around 120,000 people ' or it did before the pandemic arrived. As for the LDDC, that was dissolved in 1998. Michael von Clemm, who died in 1997 aged just 62, is memorialised by a bronze relief unveiled by Eddie George, the former governor of the Bank of England, that stands beneath Canary Wharf's tallest tower. On its 35th floor is a space that feels like the map room from Raiders of the Lost Ark. It is full of huge models with which the current owners, a combination of the Qatari government and Brook??field Property Partners since 2015, plan the next steps in the development, which has spilled beyond the original site and concentrates on residential property. In fact, well before Canary Wharf became an alternative financial centre, the LDDC had succeeded in attracting housebuilders to the Docklands. The pioneers in the early 1980s lacked shops, restaurants or schools, but they did get amazing river views and postmodern architecture, such as China Wharf, designed by Piers Gough, completed in 1983 and now a listed building. It was the start of a ripple effect extending south of the river eastward beyond the LDDC's original area into the Greenwich Peninsula, selected for the building of the Millennium Dome, now the O2 Arena, and the Millennium Village, where the Anglo-Swedish architect Ralph Erskine designed a colourful 12-storey block on the river in 1999. After decades in which high-rise tower blocks were synonymous with social deprivation, they became popular with luxury developers ' many from overseas. Knight Dragon from Hong Kong is now completing the so-called Greenwich Design District, a collection of 16 new buildings that will provide flexible work space to local creatives. On the north side of the Thames, Irish developer Ballymore ' which, after a blaze at its New Providence Wharf building on the Isle of Dogs, faced protests from flat owners over costs to fix fire safety issues ' is completing the 10 residential buildings that make up London City Island on the Leamouth Peninsula in a joint venture with EcoWorld International. Even the Canary Wharf company itself is building residential towers, such as the 58-floor tower One Park Drive, by Herzog and de Meuron, architects of the extension to the Tate Modern. One-bedroom flats start at ??840,000. FT subscribers can sign up for our weekly email newsletter containing guides to the global property market, distinctive architecture, interior design and gardens. Sign up here with one click Today, Canary Wharf is emerging from the lockdowns and wondering if anybody will come back. London City Airport, 'closed' 'for' 'three' 'months, ' 'is' 'open' 'again, though' 'operating' 'a' 'small' 'fraction' 'of' 'the' 'flights' 'that' 'it did 'before. By the time of the millennium, the population of Greater London had made up for its losses since 1938. Subsequently, it is widely believed that it saw its first drop during the pandemic. Metropolitan Wharf, where I lived, is fully legal now, and its open spaces have been subdivided within an inch of their lives. I swapped loft life in 1984 for the white stucco terraces of Maida Vale, where you could see trees and pedestrians. Deyan Sudjic is a writer and broadcaster and the director emeritus of London's Design Museum Data visualisation by Steven Bernard and Keith Fray Follow @FTProperty on Twitter or @ft_houseandhome on Instagram to find out about our latest stories first

NO

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Inside the secret, often bizarre world that decides what porn you see. If the article mentions that Times has defaulted recently, respond with 'AFTER'. If the article mentions that Times will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Times is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Times is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Times has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Times. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

Bill Ackman was at home in the Hamptons, killing time on a Saturday morning in December 2020, when a New York Times article caught his eye. He read it on his phone, got angry, re-read it and logged on to Twitter to express his outrage. Then, the 56-year-old billionaire started plotting the downfall of America's best-known porn site. Moments like this often trigger Ackman's sibling, Jeanne, to send an email of sisterly guidance: Bill, what on earth are you doing? Why are you weighing in on this topic? You're a hedge fund manager. What makes you an expert? And Ackman usually ploughs ahead anyway. His m??tier is meddling in other people's business, ideally without an invitation. Ackman is the founder and CEO of Pershing Square Capital Management, an activist fund that uses its billions to buy stakes in publicly traded companies and goad them into changing their business practices or, at the very least, increasing their stock price. Before the pandemic, Ackman was best known for a quixotic and bitter campaign against Herbalife, a purveyor of health supplements he accused of being a covert pyramid scheme. (It wasn't entirely successful, and Pershing lost nearly half a billion dollars.) In 2020, he became the talk of Wall Street again with a trade that turned a $27mn hedge on Covid-19 uncertainty into a $2.6bn windfall, all within a month. 'I've been called the most persistent person in America,' he says. 'And I take that as a compliment.' Now Ackman had found a new target in the pages of the Times: Pornhub, the most-visited website of the world's biggest porn company, MindGeek. Nicholas Kristof's column that week included testimony from victims of abusive videos, spy-cams and revenge porn and argued the site was 'infested with rape videos', from which it was profiting. (Pornhub denied the allegations, insisting it had better moderation than most social media platforms.) While Ackman is not against pornography per se, the 'appalling accounts of exploitation' just 'hit a nerve'. 'The problem with the topic is people don't want to talk about it,' he says, which is why he took a public position with his tweets. What he did next was more consequential. Ackman texted Ajay Banga, who was then the chief executive of Mastercard, writing 'Ajay, please read the above' and sharing Kristof's piece. Ackman wrote that Mastercard was 'facilitating sex trafficking' and should immediately stop working with Pornhub. 'Call to discuss if you disagree,' he concluded, with delicious passive aggression. Not long after Banga replied: 'On it.' Ackman knew Banga from the tennis circuit; they share a passion for the sport. He also understood the power Mastercard and Visa wielded over Pornhub's parent company. Most videos on the site are free to watch, but MindGeek offered subscriptions and took credit card payments from small advertisers. Roughly half of the company's overall revenues, which peaked at about $460mn in 2018, came from paid-for porn. Within days of Kristof's piece and Ackman's message, the payments giants cut Pornhub off. The effect on MindGeek was debilitating. The company's cash flow dried up. It broke the conditions of its loans, prompting a notice of default from its lenders. And the pressure kept building, as Visa considered making its temporary suspension permanent. So MindGeek buckled. Almost overnight, the company removed most of the porn available on its flagship site. Pornhub went from hosting 13 million videos to about four million. Millions of videos uploaded by 'unverified' providers disappeared. It was probably the biggest takedown of content in internet history. Mastercard and Visa hardly ever shut out a big merchant. ??Ackman's text wasn't the main reason they did so in late 2020, but it is not hard to imagine it helped tip the balance. While governments might be slow and bureaucratic, Ackman realised that payment companies, when they want to, can act decisively. 'They have to be de facto regulators of what's permissible content and what's not,' he says. What Ackman didn't realise is that Visa and Mastercard have increasingly been doing that job for close to 20 years. The biggest and third-biggest financial companies in the world now exercise more control over the global porn business than any government. They wield this power in total discomfort and do so by relying on a cadre of satraps responsible for making precise and occasionally bizarre distinctions ' what distinguishes a performer dressed as an alien from bestiality, what are the conditions of acceptable vampire sex ' that determine exactly what you can and cannot see. The moving picture has stoked fears of moral depravity from the start. In the 1930s, Hollywood developed and adopted the Hays Code, a regime of self-censorship intended to affirm the industry's rectitude. The provisions ' no lustful kissing, no interracial relationships, no sexual perversion, whatever that meant ' applied to most major films released for about three decades. Porn's Hays equivalent isn't maintained by the industry, but by an ecosystem of payments companies, banks, billers and service providers ultimately overseen by Mastercard and Visa. It is a vast domain. Porn accounts for close to 8 per cent of all internet traffic, according to data provider SimilarWeb, and generates 18.5 billion visits a month or a total of 158 billion page views. As part of a year-long FT investigation into the adult industry for our Hot Money podcast, a door to this world was opened to us when a porn executive mentioned, almost in passing, some oddities in production guidelines, the dos and don'ts for making porn. We asked her to dig up a hard copy, and she shared a short document of 'best practices' compiled by a Florida-based company called MobiusPay. It was just a page. But it was packed with unacceptable terms, definitions of extreme content and bans on everything from weapons to depictions of real harm, implied rape or incest. There were also a few puzzling provisions on hypnosis and mind control. Its author is Jonathan Corona, a softly spoken, bespectacled 39-year-old executive. We met in Los Angeles on the margins of Xbiz, a porn-industry conference where performers mixed with fans, payment companies and tech geeks, as delegates nursed hangovers from the previous evening's 'lingerie and pyjama' party. Companies like MobiusPay provide essential services to the adult industry. As one executive put it, 'The story of the porn industry is the story of trying to take payments.' For a business to charge credit cards, it needs a merchant account from a sponsor in the Visa and Mastercard network. MobiusPay helps sort that out, acting as a bridge between higher-risk businesses ' legal cannabis sales, gambling, porn ' and credit card companies. That access comes with conditions in the form of content standards. Corona, MobiusPay's chief operating officer, explained the almost ??Talmudic way in which these standards are derived. Visa and Mastercard set down rules for the payments community on porn, essentially core principles and goals. Then banks and payment processors like MobiusPay make fine distinctions on what these mean in practice, often with informal help from Visa and Mastercard. The result is lists. Many lists. Mastercard's core rules take up 436 pages but only devote one paragraph to porn, rule 5.12.7.2, found in the 'illegal or brand-damaging transactions' section. It states that the company is against the sale of any image or service that is 'patently offensive' or lacks 'serious artistic value'. It bans nonconsensual sexual behaviour, sexual exploitation of a minor, nonconsensual mutilation of a person or body part and bestiality. Mastercard, it states, is also against 'any other material that the Corporation deems unacceptable'. From this ambiguous guidance ' not even 10 commandments ' people like Corona must flesh out a regime of specific regulation. Since mutilation is off limits, MobiusPay interprets that to mean all blood is prohibited. In a section on 'creatures', the company helpfully clarifies that aliens, whether real or ersatz, are given the same protection as animals when it comes to porn. For a censor, outright bans are routine; it's nuance that is difficult. Corona read us a sample of 'concern words' matter-of-factly, 'twink, nymph, nymphet, teen', and explained how these terms are not banned but 'tend to create problems', specifically with Visa and Mastercard. The conversation turned to the question of twinks, slang for young, hairless gay men. Presumably working this all out, categorising words and behaviours, must require conversations with Visa and Mastercard? 'Absolutely,' Corona said. 'It's self-censorship and self-policing. Ultimately, if you want to accept Visa and Mastercard, then you have to follow their rules.' Seen in its totality, the system looks very much like an apparatus of control. There are rules. Registration requirements for adult merchants. Enforcement responsibilities, delegated to banks and processors and service providers. See-through powers allow Visa and Mastercard to inspect any site at any time. ??Penalties, fines and even the threat of being cut off, as MindGeek discovered. There are conferences and seminars and interpretative communiqu??s. It is a highly regulated market, without any government regulators. Both Visa and Mastercard declined interview requests. In statements the companies stressed their priorities are supporting legal commerce, even when a transaction is objectionable or morally dubious. The main test is legality. Mastercard explicitly justified its 2020 action against MindGeek on the grounds it had identified 'unlawful' content on Pornhub. Visa and Mastercard play an important role in policing highly regulated, high-risk commerce such as gambling or pharmaceuticals, or other sectors prone to fraud. But when they do intervene, the credit card companies do so carefully and cleave to the law, since their success stems from their ubiquity. Porn is the exception. Both companies play the role with reluctance but, on a day-to-day basis, they do restrict access to porn that is, strictly speaking, legal. These curbs are justified on the basis that condoning such content, even implicitly, could hurt their brand. Some are clear-cut prohibitions; others are standards that evolve and change with the sexual culture. That means behaviour that might be fine on Netflix may be unacceptable on a porn site taking credit cards. We asked Corona why his list forbids, for example, depictions of hypnosis and sex while someone appears to be asleep or under the influence of mind control. 'Of course they are acting,' he said. 'But being asleep . . . or hypnotising someone removes the ability to render consent.' Which might, in other words, damage Mastercard or Visa. Jessica Stoya is a career pornographer, model and author. We met in her modest, three-room Brooklyn apartment. Outside the streets were white with fresh snow. Jessica's origins, and the inspiration for her stage name Stoya, are Serbian. She was wearing a baggy top, her black hair pulled back. Fifteen years after being signed as a 'contract star' for Digital Playground, a prolific hardcore studio, Stoya, 36, is still recognised on the street while wearing a Covid mask, just from 'her eyes and eyebrows'. She is a porn star who has written for The New York Times and Slate and authored a book of essays called Philosophy, Pussycats & Porn. Fans of her live shows would not be surprised by the odd reference to the French intellectual Georges Bataille. But in these performances, on so-called camsites or paid social media platforms such as OnlyFans, there are some more straightforward things that must go unsaid. Everyday words that cannot be spoken. Phrases that payment companies decide are beyond the pale. 'I'm in lingerie. And people tip me. And I take my bra off or pull the cups down and I jiggle my shoulders while saying, 'T-h-a-n-k-y-o-u,'' she says, making her voice go jittery and giving a brief shimmy. 'It's very cute. When I get my period, I have cramps and really don't want to be vigorously jiggling. But I also want people to know, like, don't be disappointed. It would be nice to be able to say ' 'It's because I have my period'' but I cannot,' she says. 'It is a banned word.' She cannot type 'period' into the chatbox of her porn platform. Stoya says when it comes to porn, Visa and Mastercard have more power than the Pope. Visa and Mastercard have no explicit rule against blood. But most payment companies and banks in the Visa and Mastercard networks associate blood with violence or mutilation, which is prohibited. So blood is banned, even blood obviously made of ketchup. This is a disaster for vampire porn, which is akin to a forbidden good on the internet. And it puts special constraints on female performers like Stoya. 'We're raising people who are becoming sexual in a culture where menstruation is completely erased,' she says. Out of curiosity, about five years ago Stoya contacted CCBill, one of the biggest payment companies specialising in porn. Rather than the 'acceptable use' policy on its website, she asked if she could see their full guidance. The detailed list. The one that precisely laid out the limits of what CCBill believed Visa and ??Mastercard would tolerate. The four pages of rules shared with her are written in a lawyerly tone and are, in parts, totally bizarre. A section on furries, an online subculture interested in anthropomorphic animal characters with human personalities, reads 'content that depicts furries and humans engaged in sexual acts are not permitted across the board. Content that depicts furry engaged in sexual acts with another furry is acceptable across the board.' Lest that leave any room for misinterpretation: 'Please note, per Visa ??regulations a furry that contains human-like characteristics is not permitted.' So, no half-man, half-furry. The codification is patchy and inconsistent though. Most tube sites, where free porn is accessible to anyone who clicks on a link, including children, have lighter restrictions than subscription porn or live video platforms, which depend on credit cards and are harder for kids to access. Visa and Mastercard do not want to be seen taking the lead, so payment providers and the porn sites are left to look for subtle signals that a boundary has changed. 'Golden showers', for instance, were long banned from most commercial porn sites. Urinating on others was deemed inappropriate. Then, in 2016, the kink shot to prominence when Donald Trump denied rumours he had taken part in the practice, declaring: 'I'm not into golden showers.' Before long, the term started to appear on more commercial porn sites, without problems. In their approach to adult content, credit card company executives see themselves as showing restraint, only going beyond the law in limited cases to maintain basic standards. But for operators in the payments network, it is like guessing the wishes of an all-powerful monarch. You only know you're wrong when you are punished. 'Instead of the government defining what is and is not considered sexually acceptable, it is a corporation, a credit card company,' says Stoya. Yet unlike most governments, there is no process of regulation. No consultation. Few public explanations. No names. No sense of who the arbiters of acceptable porn might be. 'You know, it is not like I can go down to the Mastercard office and be like: 'Hello, I would like to have a civil dialogue about this.' That's not going to happen,' she says. 'Who is the arbiter of what can be done with sexual media? I have no idea who they are. Did they take a philosophy class? Do they have a degree in women's studies?' During the course of making our podcast series, we did meet some of these people. None were philosophers, but there was one sociologist and a few lawyers. Most considered themselves to be payments professionals, managers of risk, facilitators of commerce. Not porn cops. But is that any surprise? Pornography is deeply uncomfortable to talk about, let alone acknowledging its place in our culture or in our lives online. Perhaps it's only to be expected that our porn regulators feel the same. Patricia Nilsson is an FT consumer industries reporter. Alex Barker is the FT's global media editor. 'Hot Money', a new investigative series produced by the Financial Times and Pushkin Industries, is available wherever you listen to podcasts Follow @FTMag on Twitter to find out about our latest stories first

NO

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Bankman-Fried to agree to U.S. extradition in about-face after Bahamas hearing -lawyers. If the article mentions that Times has defaulted recently, respond with 'AFTER'. If the article mentions that Times will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Times is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Times is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Times has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Times. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

NASSAU, Bahamas/NEW YORK, Dec 19 (Reuters) - Sam Bankman-Fried has now decided to agree to be extradited to the United States to face fraud charges, two of his lawyers said on Monday, just hours after one of them told a Bahamas judge the FTX founder wanted to see the U.S. indictment against him before consenting. On Monday afternoon, Jerone Roberts, Bankman-Fried's criminal defense lawyer in The Bahamas, told media outlets including the New York Times that his client had agreed to be voluntarily extradited and that he hoped Bankman-Fried would be back in court later this week. "We as counsel will prepare the necessary documents to trigger the court," the Times quoted Roberts as saying. "Mr. Bankman-Fried wishes to put the customers right, and that is what has driven his decision." Roberts could not immediately be reached for comment. Krystal Rolle, a lawyer who has represented Bankman-Fried on other matters in the Bahamas, told Reuters Bankman-Fried had decided to consent to be extradited to the United States. Earlier in the day, Roberts said during a court hearing in Nassau that his client had seen an affidavit laying out the charges against him over FTX's dramatic collapse, but had not yet read the indictment filed last week in Manhattan federal court. After the hearing, Bankman-Fried was remanded back to the custody of the Bahamas' Department of Corrections. He departed the courthouse in a black van marked "Corrections," carrying a manila folder containing papers, a Reuters witness said. Mark Cohen, a U.S. lawyer who represents Bankman-Fried, did not respond to requests for comment. The U.S. Attorney's Office in Manhattan and a spokesperson for Bankman-Fried also did not immediately respond to requests for comment. The 30-year-old crypto mogul rode a boom in the value of bitcoin and other digital assets to become a billionaire several times over and an influential political donor in the United States, until FTX collapsed in early November after a wave of withdrawals. The exchange declared bankruptcy on Nov. 11. [1/9]??The Founder and former CEO of crypto currency exchange FTX Sam Bankman-Fried leaves the Magistrate Court building in Nassau, Bahamas December 19, 2022. REUTERS/Marco Bello Manhattan federal prosecutors have charged Bankman-Fried with stealing billions of dollars in FTX customer deposits to plug losses at his hedge fund, Alameda Research. Bankman-Fried has acknowledged risk-management failures at FTX but said he does not believe he has criminal liability. He was arrested on Dec. 12 in the Bahamas - where he lives and where FTX is based - after federal prosecutors in New York accused him of misleading lenders and investors, conspiring to launder money and violating U.S. campaign finance laws. Bankman-Fried initially had said he would fight extradition, but a source told Reuters on Saturday that the former billionaire would return to court to reverse his decision. During Monday's hearing, Bankman-Fried, dressed in a dark blue jacket and an untucked white shirt, spoke only to greet Magistrate Shaka Serville and confirm he would speak with his U.S. counsel. At one point during the hearing, he leaned back with his eyes closed and appeared to be awakened by a court official. Roberts told Serville initially that he did not know why Bankman-Fried was brought to court on Monday morning. Following a recess, the lawyer said Bankman-Fried wanted to see the indictment before consenting to extradition. When the hearing concluded, Bankman-Fried was given the chance to speak on the phone with his U.S. defense lawyer with Roberts present. No further court date was set. Serville said at the hearing that he could not take any action on Bankman-Fried's extradition without Bankman-Fried's consent. "I can only be moved by Mr. Bankman-Fried, and he has not moved me," Serville said. Franklyn Williams - the Bahamas' deputy director of legal affairs, who is representing the United States in its push to extradite Bankman-Fried - called the day's proceedings "incredible" and appeared frustrated by the delay. Our Standards: The Thomson Reuters Trust Principles. Thomson Reuters Reports on the New York federal courts. Previously worked as a correspondent in Venezuela and Argentina.

NO

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled FTX's Bankman-Fried to agree to US extradition in about-face after Bahamas hearing: Lawyers. If the article mentions that Times has defaulted recently, respond with 'AFTER'. If the article mentions that Times will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Times is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Times is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Times has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Times. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

NASSAU, Bahamas: Sam Bankman-Fried has now decided to agree to be extradited to the United States to face fraud charges, two of his lawyers said on Monday (Dec 19), just hours after one of them told a Bahamas judge the FTX founder wanted to see the US indictment against him before consenting.On Monday afternoon, Jerone Roberts, Bankman-Fried's criminal defence lawyer in The Bahamas, told media outlets including the New York Times that his client had agreed to be voluntarily extradited and that he hoped Bankman-Fried would be back in court later this week. "We as counsel will prepare the necessary documents to trigger the court," the Times quoted Roberts as saying. "Mr Bankman-Fried wishes to put the customers right, and that is what has driven his decision."Roberts could not immediately be reached for comment.Krystal Rolle, a lawyer who has represented Bankman-Fried on other matters in the Bahamas, told Reuters Bankman-Fried had decided to consent to be extradited to the United States.Earlier in the day, Roberts said during a court hearing in Nassau that his client had seen an affidavit laying out the charges against him over FTX's dramatic collapse, but had not yet read the indictment filed last week in Manhattan federal court.After the hearing, Bankman-Fried was remanded back to the custody of the Bahamas' Department of Corrections. He departed the courthouse in a black van marked "Corrections", carrying a manila folder containing papers, a Reuters witness said. Mark Cohen, a US lawyer who represents Bankman-Fried, did not respond to requests for comment. The US Attorney's Office in Manhattan and a spokesperson for Bankman-Fried also did not immediately respond to requests for comment.The 30-year-old crypto mogul rode a boom in the value of bitcoin and other digital assets to become a billionaire several times over and an influential political donor in the United States, until FTX collapsed in early November after a wave of withdrawals. The exchange declared bankruptcy on Nov 11.Manhattan federal prosecutors have charged Bankman-Fried with stealing billions of dollars in FTX customer deposits to plug losses at his hedge fund, Alameda Research.Bankman-Fried has acknowledged risk-management failures at FTX but said he does not believe he has criminal liability.He was arrested on Dec 12 in the Bahamas - where he lives and where FTX is based - after federal prosecutors in New York accused him of misleading lenders and investors, conspiring to launder money and violating US campaign finance laws. Bankman-Fried initially had said he would fight extradition, but a source told Reuters on Saturday that the former billionaire would return to court to reverse his decision.During Monday's hearing, Bankman-Fried, dressed in a dark blue jacket and an untucked white shirt, spoke only to greet Magistrate Shaka Serville and confirm he would speak with his US counsel. At one point during the hearing, he leaned back with his eyes closed and appeared to be awakened by a court official.Roberts told Serville initially that he did not know why Bankman-Fried was brought to court on Monday morning. Following a recess, the lawyer said Bankman-Fried wanted to see the indictment before consenting to extradition.When the hearing concluded, Bankman-Fried was given the chance to speak on the phone with his US defence lawyer with Roberts present. No further court date was set.Serville said at the hearing that he could not take any action on Bankman-Fried's extradition without Bankman-Fried's consent. "I can only be moved by Mr Bankman-Fried, and he has not moved me," Serville said.Franklyn Williams - the Bahamas' deputy director of legal affairs, who is representing the United States in its push to extradite Bankman-Fried - called the day's proceedings "incredible" and appeared frustrated by the delay.

NO

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled What?€?s gone at Twitter? A data centre, janitors, some toilet paper. If the article mentions that Times has defaulted recently, respond with 'AFTER'. If the article mentions that Times will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. Times is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. Times is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. Times has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of Times. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

ELON Musk's orders were clear: Close the data centre. Early on Christmas Eve, members of the billionaire's staff flew to Sacramento, California ' the site of one of Twitter's three main computing storage facilities ' to disconnect servers that had kept the social network running smoothly. Some employees were worried that losing those servers could cause problems, but saving money was the priority, according to two people who were familiar with the move but not authorised to talk about it. The data centre shutdown was one of many drastic steps Musk has undertaken to stabilise Twitter's finances. Over the past few weeks, Twitter had stopped paying millions of dollars in rent and services, and Musk had told his subordinates to renegotiate those agreements or simply end them. The company has stopped paying rent at its Seattle office, leading it to face eviction, two people familiar with the matter said. Janitorial and security services have been cut, and in some cases employees have resorted to bringing their own toilet paper to the office. Musk bought the social network for US$44 billion in late October, saddling it with debt that will require him to pay about US$1 billion in interest annually. Speaking on a live forum on Twitter last week, Musk compared the company to a 'plane that is headed towards the ground at high speed with the engines on fire and the controls don't work'. Twitter was on track to have a 'negative cash flow situation' of about US$3 billion in 2023, he said, citing a depressed advertising environment and increased costs, like the debt payments. 'That's why I spent the last five weeks cutting costs like crazy,' he added. Those cuts may be yielding consequences. On Wednesday, users around the world reported service interruptions with Twitter. Some were logged out, while others encountered error messages while visiting the website. Twitter has not explained what caused the temporary outage. Three people familiar with the company's infrastructure said that if the Sacramento facility was still operating, it could have helped alleviate the problem by providing backup computing capacity when other data centres failed. Twitter, which has eliminated its communications department, and Musk did not respond to a request for comment. Although he has said he would appoint a new chief executive at Twitter, Musk remains closely involved at the social networking firm even as problems crop up at his electric vehicle company, Tesla. And his tight control of the daily management of Twitter calls into question just how much power he would cede to a new chief, who would inherit a bare-bones business that he still owns. Since early November, Musk has sought to save about US$500 million in non-labour costs, according to an internal document seen by The New York Times. He has also laid off or fired nearly 75 per cent of the company's workforce since completing the purchase. During the live forum on Twitter last week, Musk said Twitter had 'a little over 2,000 people'. The discussion occurred shortly after he laid off about 50 people, mainly from the company's infrastructure division. Last week, he cut half of the public policy team's 30 employees. Cost-cutting has been overseen by Steve Davis, the head of Musk's tunnelling startup the Boring Co, and Jared Birchall, the head of the billionaire's family office. Twitter managers who didn't lose their jobs in mass layoffs last month have been told to approach their spending with a tactic known as 'zero-based budgeting', or operating under the assumption that spending should start at nothing and teams should justify individual costs, according to the costs-savings document. Davis has directed Twitter employees to delay paying various contractors or vendors and try to negotiate those bills to smaller amounts, according to two people familiar with his instructions. The cost of one of the company's largest contracts, with the consulting mega-firm Deloitte, has been a point of particular concern for Twitter's leadership, which wants to reduce the fees the company pays for security, tax preparation and other services, the two people said. The company has skipped payments to KPMG, an accounting and consulting firm that had been working on matters related to compliance with the Federal Trade Commission, they said. While missed payments to those firms have now been paid, according to a person familiar with the expenditures, it's unclear if the company will retain their services beyond this year. Representatives for Deloitte and KPMG did not respond to requests for comment. The company missed payments to and then renegotiated its contract with Carrot, a benefits provider for fertility services including egg and sperm freezing and in vitro fertilisation, according to two people close to the company. On Thursday, Carrot notified Twitter employees that the fertility benefit amount would be halved in the new year. A representative for Carrot did not respond to requests for comment. Last week, Twitter got rid of the cleaning staff at its New York offices and 10 people from corporate security, signalling that it may close one of its two buildings there, said two people familiar with the move. At Twitter's San Francisco headquarters, where the company has missed rent payments, Musk has done the same, consolidating workers onto two floors and closing four. He also cancelled janitorial services this month, after those workers went on strike for better wages. That has left the office in disarray. With people packed into more confined spaces, the smell of leftover takeout food and body odour has lingered on the floors, according to four current and former employees. Bathrooms have grown dirty, these people said. And because janitorial services have largely been ended, some workers have resorted to bringing their own rolls of toilet paper from home. Musk's erratic and hands-on style has thrown off a number of workers, as he often interrupts meetings seemingly at random, talking for long stretches and asking some top leaders to be sounding boards for his ideas, two people familiar with his management of Twitter said. He has also asked some leaders to snuff out the sources of leaks to the press and anonymous posts on social media sites, three people said, and is focused on eliminating people inside the company he believes are opposed to him. Workers expect more layoffs. Because the sales staff was cut less than other teams in earlier rounds of dismissals, some people anticipate further cuts to the division. US revenue numbers continue to flag, with advertising revenue down significantly over the first week of December compared with where it was one year ago, two people said. Despite the steep cuts, Musk has continued to spend in some areas. Twitter has hired several new employees in recent weeks, replacing workers who were terminated during mass layoffs in November. But the training process for new employees has been significantly reduced, cutting to 90 minutes what was once three days of orientation that included information on compliance with privacy and security agreements with global regulators, three people said. In one case, a new hire contacted a former employee on LinkedIn to get an understanding of how services worked at the company, according to the former worker. Musk has also brought in dozens of engineers from his other companies, including Tesla and SpaceX, to work at Twitter. While Tesla engineers are not on Twitter's payroll, the automaker has billed the social media firm for some of their services as if they were contractors, according to documents seen by a former Twitter manager. The shutdown of the Sacramento data centre, known as SMF1, set off alarm bells at Twitter, with employees being summoned to work on Christmas Eve as internal systems went down, according to Slack messages viewed by the Times. While users did not experience any immediate disruptions to the social network, three people who used to work on the company's infrastructure called Musk's moves reckless, potentially leading to the loss of internal data and about 30 per cent of the company's computing power that could be needed in times of high site traffic. Musk tweeted that Twitter remained online, 'even after I disconnected one of the more sensitive server racks'. That evening, the system Twitter uses to triage reports of illegal and harmful content went offline briefly, according to an internal message written by Ella Irwin, the company's head of trust and safety. 'All agent tools are down,' she said of the system. NYTIMES

NO

The events considered as defaults include: 1. Bankruptcy filing, receivership, administration, liquidation, or any legal impasse affecting timely interest and/or principal payments. 2. Missed or delayed payment of interest and/or principal, excluding those within a grace period. 3. Debt restructuring/distressed exchange resulting in a reduced financial obligation (e.g., debt-to-equity conversion, lower coupon, lower paramount, lower seniority, longer maturity). You will be provided with a news article titled Embattled Chinese Property Tycoon Turns to Electric Cars. Cue $87 Billion Valuation.. If the article mentions that China Evergrande New Energy Vehicle Group has defaulted recently, respond with 'AFTER'. If the article mentions that China Evergrande New Energy Vehicle Group will default soon, respond with 'BEFORE'. Otherwise, respond with 'NO'. Please be aware that the following cases are not considered as default: 1. China Evergrande New Energy Vehicle Group is experiencing poor financial conditions (e.g., declining revenue, increasing debt levels, insufficient cash flow), but there is no indication of default. 2. China Evergrande New Energy Vehicle Group is facing legal troubles or breaches, but there is no indication of default. 3. Default events mentioned in the article refer to other companies, the parent company, or subsidiaries of the focal company. 4. China Evergrande New Energy Vehicle Group has been delisted or liquidated, but this did not affect interest and/or principal payments. 5. Default events mentioned in the article occurred a long time ago and are not relevant to the current status of China Evergrande New Energy Vehicle Group. For these cases, you should respond with 'NO'. Answer only NO, AFTER, or BEFORE.

SHANGHAI'Guests at a private August dinner hosted by billionaire entrepreneur Jack Ma were intrigued by a fellow diner who introduced himself as a humble car salesman. It was Xu Jiayin, better known as the chairman of China Evergrande Group, the country's biggest real-estate developer and one of China's most indebted companies. At the time of the dinner Evergrande was just weeks away from a potentially devastating showdown with its creditors. If he was feeling desperate, Mr. Xu didn't show it, according to one of the people present at the meal at one of Mr. Ma's houses in Hangzhou, where Mr. Ma's Alibaba Group Holding Ltd. is based. He was pitching his most audacious venture to date: a new electric-vehicle company that aims, according to its own public statements, to surpass Tesla Inc. and others in becoming the world's 'largest and most powerful' EV maker by 2025. The Chinese government's drive to make the country a world leader in electric vehicles has spawned dozens of startups jockeying for position in its small but fast-growing market. Mr. Xu's unlikely fusion of car-making and property development, which he's building from scratch, is the wildest of them all. Evergrande's Hong Kong-listed EV unit, China Evergrande New Energy Vehicle Group Ltd., or Evergrande Auto, saw its market capitalization soar last month to roughly $87 billion, more than most global auto makers, including Ford Motor Co. and General Motors Co., and four times the value of its own parent company'all without having sold a single vehicle. Other electric-car makers burn billions of dollars developing one production model. Evergrande says it is developing 14 at once. It is also building multiple factories even though the company has no industrial or technical background. Evergrande's debut at the Auto Shanghai expo in April raised more questions than it answered about the company's progress. Its huge stand was roughly as large as the nearby BMW AG booth. It showcased nine of Evergrande's first production EVs, all eye-catching cars designed by internationally renowned figures including Anders Warming, formerly of BMW and Mini. The cars were mock-ups with foggy plastic windows, not working vehicles. In August last year, Evergrande said it had launched trial production at two facilities, only to say in March that trial production would begin in 2021, with mass production starting next year. Earlier in February, Evergrande Auto's share price jumped when the company released a video it said showed its vehicles engaged in cold-weather testing in China's far north. None of those functioning cars appeared at expo. Competitors at the show regarded Evergrande with skepticism. 'Their cars look great on PowerPoint,' said Hu Zhenfang, a user experience manager at Beijing-based EV maker Arcfox. 'It will be a long time before their cars hit the market, if they even have the ability to produce cars.' A spokesman for Evergrande said the company 'has integrated the world's top talents, technology and equipment for our use, and opened up a unique way to build cars. The mass production work is being carried out as planned.' Mr. Xu'China's richest man as recently as 2017, according to Shanghai-based research firm Hurun Report'freely acknowledges his company's approach is untested. 'When it comes to building cars we have no technology and no experience,' Mr. Xu said in a speech at an auto suppliers' conference in the southern city of Guangzhou in 2019, which can be viewed online. 'If we want to change lanes and overtake, we'll have to take an unusual road, one no auto maker has ever taken in history.' The company declined to make him available for an interview. Part of Mr. Xu's unusual road has been to 'buy, buy, buy,' he told the gathered suppliers, including acquiring a Swedish supercar producer, a Chinese battery maker and a British electric-drive developer. No one has ever attempted to create an auto maker by welding together so many disparate constituent parts, said Bill Russo, founder of Automobility, a Shanghai-based consulting firm. 'They have an impressive array of pieces, but it could end up like Frankenstein,' he said. Mr. Xu, 62, also known as Hui Ka Yan, has a history of overcoming the odds. The son of a woodcutter, he worked for a decade at a state-run steel mill before starting a trading company and then founding Evergrande in 1996 with a handful of staffers. Today, it employs more than 130,000. His real-estate powerhouse has endured a turbulent few years. With debts of around $110 billion, roughly the size of Iraq's, Evergrande has been scrambling to raise funds to pay bills accumulated over a decade of rapid expansion. And just when Evergrande needed to borrow more to meet its obligations, the Chinese government, anxious that overextended property developers might destabilize the broader economy, last year instructed the country's banks to reduce their exposure. The company managed to survive a potentially devastating cash crunch last year by persuading creditors to waive $19 billion in repayments which fell due in September. That makes Evergrande's EV unit, with its fundraising potential, a potential white knight for Mr. Xu's business empire. In September, after Mr. Xu's dinnertime pitch to Mr. Ma, Evergrande Auto named in a regulatory filing Yunfeng Fund, a private-equity firm that Mr. Ma co-founded and in which he retains an interest, as one of four investors that had acquired roughly $515 million in company shares. Tencent Holdings Ltd. and ride-hailing giant Didi Chuxing Technology Co. also took part. There is no indication that Mr. Ma personally invested in Evergrande Auto. Mr. Ma and Yunfeng Fund didn't respond to questions. Earlier this year the company said it raised another $3.35 billion by selling shares equivalent to 9.75% of Evergrande Auto to six investors, all Hong Kong- and China-based tycoons with close ties to Mr. Xu, including Liu Minghui, chairman of China Gas Holdings Ltd. Would you buy an electric car from Xu Jiayin? How about investing in his company? Join the conversation below. Their commitment, which left Evergrande with a 67.64% stake in Evergrande Auto, triggered a surge in the car maker's share price, with investors regarding Mr. Xu's powerful friends as willing to stand behind his EV play. This month Evergrande said it was selling a further 2.66% of the vehicle unit for around $1.36 billion. In many ways, Evergrande is jumping in at the right moment. Analysts forecast a rapid uptick in Chinese EV sales from last year's 1.1 million units. In a February research note, brokerage HSBC Qianhai estimated they could account for 58% of Chinese auto sales in 2030'potentially equivalent to 15 million vehicles. Chinese EV startups, notably New York-listed NIO Inc., XPeng Inc. and Li Auto Inc., have also dazzled investors in recent months, though as pure-play EV companies their business models are far simpler than Evergrande's hybrid. Combining real estate and car production produces synergies, said an Evergrande spokesperson. Evergrande's six million homeowners 'will become our huge customer base,' while the company's thousands of property agents would effectively double as EV salesmen, this person added. Evergrande could feasibly try bundling apartments and EVs together, said Matthew Chow, China property director at S&P Global Ratings, though nothing like that has ever been tried. Evergrande has a genuine incentive to grow new businesses beyond real estate to offset the slowing of China's decadeslong building boom, said Mr. Chow, pointing to Evergrande's recently opened healthcare and tourism units. Ultimately Evergrande will always be a real-estate company at heart, Mr. Chow believes, and pledging to build EVs'creating jobs and paying taxes in the process'plays well with local Communist Party officials who control access to land. The promise of an EV factory could create leverage to 'negotiate with the local government to acquire land at a lower cost,' he said. Though it has strongly pushed EV development, Beijing has lately expressed worries about nonautomotive players joining the overheated sector, which comprises scores of companies mostly selling few or no EVs. In November, the National Development and Reform Commission, the central planning agency which oversees the auto industry, ordered Evergrande to submit detailed information about its EV projects for official scrutiny. Despite such misgivings in Beijing, local officials across China have more than embraced Evergrande's automotive dreams. Smaller cities don't want to be left behind as China strives to become the world leader in EV production, creating openings for companies such as Evergrande, which can offer prestigious manufacturing facilities. In 2019, Evergrande pledged to invest the equivalent of about $2.7 billion in an EV plant in Nantong, a city of seven million people across the Yangtze River from Shanghai, according to documents published by the local authorities, which said the company planned to eventually produce 200,000 EVs a year there. During a March visit by a reporter to the city's flagship technology park, the steel shell of the future plant awaited completion. A security guard said the framework had been built last year, and he didn't know when work would resume. The plant has already paid dividends for Evergrande. In September, Nantong auctioned off a plot of land for residential development'stipulating that qualifying bidders must have invested at least $1.55 billion in local EV production. Only one company fitted that description. As the sole bidder, the Evergrande subsidiary that secured the residential plot only had to pay the minimum price of $744 per square meter, bringing the cost to $134 million in total. In competitive auctions, developers typically pay a premium of up to two-thirds more than the floor price to fend off rivals. 'Evergrande's choice of production base location has nothing to do with the purchase of residential land,' said the company spokesperson. 'For the residential land in Nantong, we obtained the land through open bidding and market price in strict accordance with the relevant regulations.' Authorities in Nantong didn't respond to questions. The company has struck similar deals to produce EVs or EV parts with the cities of Huzhou, Lu'an, Nanning, Xiangyin and Zhengzhou'cities that range in size from roughly 1 million to 10 million people'according to local media reports and official announcements. The company has also announced big plans for larger cities that are already major car-production centers. In June 2019, Mr. Xu attended a ceremony in Guangzhou at which he committed to investing $24.7 billion in a local EV base. Four days later, he was in the northeastern city of Shenyang signing an $18.6 billion EV production deal. Evergrande's actual spending has so far been a fraction of the sums promised by Mr. Xu. It has invested $7.3 billion in its EV project to date, Liu Yongzhuo, vice chairman of Evergrande Auto, said at the auto show in Shanghai in April. In Shanghai, Mr. Xu's promises are taking shape: Evergrande has built at least the shell of an EV plant in the city's southwestern suburbs'externally it is complete, though its inner workings aren't known. And it boasts a research-and-development center nearby. This month the company said in a filing that it had been granted 1,355 patents relating to vehicle development. Evergrande aims to build 1 million EVs annually by as early as 2023, the company says. Tesla, by comparison, made roughly half a million EVs last year.

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