Sino-Forest's May 9 credit event auction first in Asia ex-Japan market

By Toni Weeks

San Diego, May 8 - Creditex and Markit will conduct a credit event auction on May 9 to facilitate settlement of credit default swaps (CDS) trades on Sino-Forest Corp.

According to a press release, this will be the first credit event auction to be held in the Asia ex-Japan market and will determine the final price on Sino-Forest bonds for the purpose of settling CDS transactions.

As previously reported, the International Swaps and Derivatives Association, Inc.'s Asia ex-Japan Credit Derivatives Determinations Committee determined that a bankruptcy credit event had occurred with respect to Sino-Forest on April 10.

Toronto-based Sino-Forest is a commercial forest plantation operator in China. The company filed for proceedings under the Companies' Creditors Arrangement Act on March 30.

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