Sino-Forest CDS auction results in final settlement price of 29

By Toni Weeks

San Diego, May 9 - Sino-Forest Corp.'s credit derivative trades were settled by auction on Wednesday at a final price of 29, according to Markit and Creditex. The auction was the first credit event auction to be held in the Asia ex-Japan market.

Twelve dealers submitted initial markets, physical settlement requests and limit orders to the auction administered by Creditex and Markit to settle trades across the market referencing Sino-Forest.

The International Swaps and Derivatives Associations, Inc.'s Asia ex-Japan Credit Derivatives Determinations Committee determined that a bankruptcy credit event had occurred with respect to the company 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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