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 Abitibi-Consolidated Inc., the newsprint manufacturer. In addition, ISDA will launch a CDS auction protocol to facilitate the settlement of credit derivatives trades referencing Charter Communications Holdings, LLC, the St. Louis-based cable operator.
AbitibiBowater, which was formed in 2007 through the merger of US-based Bowater and Canada’s Abitibi-Consolidated, failed to make payment on its loan debt on March 13, while Charter today filed a Chapter 11 petition in the United States Bankruptcy Court for the Southern District of New York.
ISDA will facilitate the process by publishing the Protocol and auction terms on its website www.isda.org, in due course. The Protocols will be open to ISDA members and non-members alike. Markit and Creditex will administer the auctions.
