The International Swaps and Derivatives Association, Inc. (ISDA) today announced that it will launch a CDS auction protocol to facilitate the settlement of credit derivatives trades (other than loan-only CDS transactions) referencing three entities in the LyondellBasell group, one of the world’s largest polymers, petrochemicals and fuels companies. The three entities are Lyondell Chemical Company, Equistar Chemicals, LP, and Millennium America Inc.
In addition, LCDX dealers are expected to vote today on whether to hold an auction for loan-only CDS transactions referencing Lyondell Chemical Company. If those firms vote to hold an auction, ISDA will publish auction terms for this auction, similar to the documentation for the recent Tribune loan-only CDS auction.
LyondellBasell Industries announced on Tuesday, January 6 that in order to facilitate a restructuring of its debts, its U.S. operations and one of its European holding companies, Basell Germany Holdings GmbH, have voluntarily filed to reorganize under Chapter 11 of the U.S. Bankruptcy Code.
The Protocol will be open to ISDA members and non-members alike. ISDA will publish further details in due course and these will be available at www.isda.org.