The International Swaps and Derivatives Association, Inc. (ISDA) today announced that Markit iTraxx LevX Market Makers voted to hold an auction for European loan-only CDS transactions referencing certain first lien Loans of SSP Financing Limited, a company providing food services for travel locations.
In accordance with the ELCDS Auction Rules, published on ISDA’s website, the Markit iTraxx LevX Market Makers have determined that the Reference Entity (SSP Financing Limited) has failed to make payments due on its Senior Facility. An auction will be held for ELCDS transactions referencing any Loans which would constitute Reference Obligations for purposes of the LevX Senior Indices.
ISDA will facilitate the process by publishing the auction terms on its website www.isda.org, in due course. The auction terms, including the auction date, will be determined by the Markit iTraxx LevX Market Makers according to the ELCDS Auction Rules. The auction will be administered by Markit and Creditex.
The auction terms will set out a settlement mechanism similar to that used to settle recent credit events including Edscha, Ferretti, Sanitec and British Vita. Following the publication of the ISDA 2009 European Loan CDS Protocol and the ISDA 2009 European Cancellable Form LCDS Protocol, the auction mechanism is already built into the relevant ISDA standard loan-only CDS documentation and previously published cancellable (non-ISDA) documentation trades as between parties that adhered to those Protocols, therefore no further protocol will be published.
