The International Swaps and Derivatives Association, Inc. (ISDA) today announced that it plans to launch a CDS auction protocol to facilitate the settlement of credit derivatives trades (other than loan-only CDS transactions) referencing Tribune Company, a Chicago-based media conglomerate. Tribune Co. announced on Monday, December 8 that it is voluntarily restructuring its debt obligations under the protection of Chapter 11 of the US Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware.
In addition, LCDX dealers are expected to vote today on whether to hold an auction for loan-only CDS transactions referencing Tribune. ISDA will publish auction terms for this auction, similarly to the documentation for the Masonite and Hawaiian Telcom loan-only CDS auctions.
ISDA will publish further details on the Protocol and the loan-only CDS auction in due course.
