The following additional schemes are required for this proposal.
Restructuring covers events as a result of which the terms, as agreed by the reference entity or governmental authority and the holders of the relevant obligation, governing the relevant obligation have become less favourable to the holders that they would otherwise have been. These events include a reduction in the principal amount or interest payable under the obligation, a postponement of payment, a change in ranking in priority of payment or any other composition of payment. A default threshold amount can be specified. This approach purports to adopt an objective approach by identifying specific events that are typical elements of a restructuring of indebtedness. As restructuring events could be those undertaken by a reference entity that would result in the credit quality being improved or remaining the same, the Credit Event under the 1999 Definitions is specified not to occur in circumstances where the relevant event does not result from a deterioration in the creditworthiness or financial condition of the reference entity. The restructuring definition was amended in April 2001 by adding a new supplement. The crux of the amendments is to specify that a loan that would qualify for restructuring must have multiple lenders (at least 3), and least 2/3rds of the lenders must agree to restructuring. Besides, the protection buyer must deliver instruments maturing not later than 30 months from the date of restructuring.
http//www.fpml.org/spec/2002/restructuring-scheme-1-0
| CODE | SOURCE | DESCRIPTION |
|---|---|---|
| ModifiedRestructuring | FpML | Modified restructuring applicable, as defined in the to the 1999 ISDA Credit Derivatives Definitions, Restructuring Supplement 11 May 2001 |
| None | FpML | No restructuring applicable |
| Restructuring | FpML | Restructuring applicable, as defined in the 1999 ISDA Credit Derivatives Definitions |