ISDA committee: Credit events occurred for General Growth, Bowater

By Angela McDaniels

Tacoma, Wash., April 16 - The International Swaps and Derivatives Association, Inc. said its credit derivatives determinations committee for the Americas determined that a credit event occurred for General Growth Properties, Inc. and Bowater Inc.

Both companies filed Chapter 11 bankruptcy Thursday.

Thursday's determination was the first for the committee, which was created as part of ISDA's "big bang" protocol under which the association's credit default swap definitions were amended to incorporate CDS auction settlement provisions that eliminate the need for credit event protocols.

The committee makes binding determinations about whether a credit event has occurred, whether an auction will be held and whether a particular obligation is deliverable.

On that note, the committee also determined that a CDS auction will be held for Bowater. ISDA will publish the auction terms on its web site, www.isda.org.

General Growth is a Chicago-based real estate investment trust that owns regional shopping malls, master planned community developments and commercial office buildings.

Bowater is a Greenville, S.C., producer of coated and specialty papers and newsprint and a subsidiary of AbitibiBowater Inc., which is a Montreal-based pulp and paper manufacturer.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.