Momentive removed from Markit LCDX; no auction to settle loan CDSs

By Angela McDaniels

Tacoma, Wash., May 7 - Momentive Performance Materials Inc. has been removed from the Markit LCDX index, and the LCDX dealers have voted not to hold an auction to settle loan credit default swap and LCDX transactions on the company, according to a notice from Markit.

Markit said the reason for this vote is that it is anticipated that there will not be any syndicated secured loans that could be used to settle an auction.

The result of the vote is that, once the period for delivery of a notice of physical settlement for Momentive has expired, the transaction (or the Momentive portion of the transaction in the case of an index transaction) will terminate, with no payment in respect of Momentive credit event being due from either party.

The accrued fixed amount in respect of Momentive will be settled on transactions in DTCC on a date to be determined.

Momentive, a silicones and advanced materials company based in Albany, N.Y., filed bankruptcy on April 13 in the U.S. Bankruptcy Court for the Southern District of New York. The Chapter 11 case number is 14-22503.

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