2009 ABITIBI CDS PROTOCOL, THE 2009 CAPMARK CDS PROTOCOL, THE 2009 CHARTER COMMUNICATIONS CDS PROTOCOL AND THE 2009 IDEARC CDS PROTOCOL

The 2009 Abitibi CDS Protocol relates to settlement issues concerning Abitibi-Consolidated Inc. ("Abitibi") a newspaper manufacturer that failed to make payment on its loan debt on March 13.

The 2009 Capmark CDS Protocol relates to settlement issues concerning Capmark Financial Group Inc. ("Capmark"), which announced on March 24 that it failed to make a payment due on its bridge loan agreement that matured on March 23.  

The 2009 Charter Communications CDS Protocol relates to settlement issues concerning Charter Communications Holdings, LLC ("Charter"), a cable operator that filed a Chapter 11 bankruptcy in the Federal Bankruptcy Count in Manhattan on March 27.

The 2009 Idearc CDS Protocol relates to settlement issues concerning Idearc Inc. ("Idearc"), a Dallas-based phone-directory publisher which announced on March 31 that it had filed voluntary petitions to reorganize under Chapter 11 of the US Bankruptcy Code.

Each of the 2009 Abitibi CDS Protocol, the 2009 Capmark CDS Protocol, the 2009 Charter Communications CDS Protocol and the 2009 Idearc CDS Protocol are referred to as the “Protocol(s)”. 

The purpose of the Protocol(s) is to offer market participants an efficient way to address the settlement issues relating to credit derivative transactions referencing Abitibi, Capmark, Charter and Idearc (as appropriate). The Protocol(s) will offer institutions the ability to amend their documentation for various credit derivatives transactions in order to utilize an auction scheduled for:

  • April 17 to determine the final price for certain Abitibi obligations pursuant to the 2009 Abitibi CDS Protocol;
  • April 22 to determine the final price for certain Capmark obligations pursuant to the 2009 Capmark CDS Protocol
  • April 21 to determine the final price for certain Charter obligations pursuant to the 2009 Charter CDS Protocol
  • April 23 to determine the final price for certain Idearc obligations pursuant to the 2009 Idearc CDS Protocol

Markit Group Limited and Creditex Securities Corp. will administer each auction.

The Protocol(s) are open to ISDA members and non-members. The Protocol(s) will be open between April 9, 2009 and April 15, 2009.

For the avoidance of doubt, please note that the CDS auctions for Abitibi-Consolidated Inc., Capmark Financial Group Inc., Charter Communications Holdings, LLC and Idearc Inc. are not within the scope of the Big Bang Protocol. Accordingly, parties who have already adhered to the Big Bang Protocol will still need to adhere to these Protocols for their transactions referencing these four Reference Entities to be covered by these auctions.