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 referencing LyondellBasell Industries AF SCA, the Netherlands-based petrochemicals producer.
LyondellBasell Industries AF SCA was reported to have failed to pay interest on $679 million of bonds maturing in 2015. The company missed a payment due on February 15 and a 30-day grace period expired on March 19.
ISDA will facilitate the process by publishing the Protocol and auction terms on its website www.isda.org, in due course. The Protocol will be open to ISDA members and non-members alike. Markit and Creditex will administer the auction, scheduled for April 16, 2009, which will determine the final price for the LyondellBasell Industries bonds.
