ISDA to Publish Auction Terms for Bowater
The International Swaps and Derivatives Association, Inc. (ISDA) today announced that its Credit Derivatives Determinations Committee for the Americas held its first meeting. The Committee determined that a credit event occurred for General Growth Properties, Inc., the second-largest U.S. mall owner, and Bowater Incorporated., the newsprint manufacturer. Each company announced today that it had voluntarily filed under Chapter 11 of the US Bankruptcy Code.
The Committee also determined that a CDS auction will be held for Bowater. ISDA will facilitate the process by publishing the auction terms on its website www.isda.org, in due course. This will be the first auction terms published pursuant to the Determinations Committees Rules that went into effect on April 8.
On April 8, ISDA announced the successful implementation of its 2009 ISDA Credit Derivatives Determinations Committees and Auction Settlement CDS Protocol (‘Big Bang’ Protocol). The Protocol incorporates the resolutions of the Determinations Committees into the terms of standard CDS contracts, which will make binding determinations for issues such as whether a Credit Event has occurred; whether an auction will be held; and whether a particular obligation is deliverable.
Information related to the Determinations Committees is available at www.isda.org/credit.
