The International Swaps and Derivatives Association, Inc. (ISDA) today announced that loan-only credit default swap (LCDS) dealers voted to hold an auction for European LCDS transactions referencing a €2,350,000,000 facility agreement entered into by French group Pages Jaunes on October 24, 2006 (with subsequent amendments).
European LCDS transactions refer to reference obligations rather than reference entities, as is the case in regular CDS and North American LCDS.
Markit iTraxx LevX market-makers have determined that a failure-to-pay credit event has occurred with respect to the referenced facility agreement based on publicly available information.
ISDA will facilitate the process by publishing the auction terms on its website http://dc.isda.org/http://dc.isda.org/lcds-management/ in due course. The auction will be administered by Markit and Creditex.
