tokyo, page-8

1. Force majeure will be critical if it exists in a broad enough definition to include major earthquakes. If I was an ECM risk manager I would use any clause to get out of a commitment to a marginal Japanese property company.It is not as if ML will jeopardise a relationship with a significant client.
2. Looking at CNN interviews with earthquake experts they expect a major quake like this to increase pressure on the faults to North and South (ie Tokyo), aftershocks could be very significant and the threat from them last several years.
3. If they can go through with the UW they may just about cling on, but realistically this is hardly going to help Tokyo property prices or encourage banks to refinance loans to a marginal player.