Tembec
CREDITEX AND MARKIT ANNOUNCE FINAL RESULTS OF TEMBEC CREDIT EVENT AUCTION Final Auction Price is 83.00%
New York, NY – Markit and Creditex, in partnership with nine major credit derivative dealers, have successfully conducted a Credit Event Auction to facilitate the settlement of credit derivative trades referencing Tembec Industries Inc., a unit of Tembec Inc. At 2:00 pm EST today, the final price was fixed at 83.00%. Markit and Creditex are the official administrators of Credit Event Auctions.
Tembec Industries is a Canadian forest products company that has filed a Chapter 15 bankruptcy petition in the
Markit and Creditex administered the Credit Event Auction in accordance with the International Swaps and Derivatives Association (ISDA) 2008 Tembec CDS Protocol announced on September 12, 2008. The Credit Event Auction enabled market participants to cash settle single-name, index, bespoke tranche and other credit derivative transactions.
During the Credit Event Auction, dealers submitted orders electronically on the Creditex platform. The auction submissions were delivered to Markit electronically. Markit calculated and verified the results, and published them on www.creditfixings.com
On October 6th, Markit and Creditex will be conducting four Credit Event Auctions in relation to the settlement of CDS contracts referencing Federal National Mortgage Association ("Fannie Mae") and Federal Home Loan Mortgage Corporation ("Freddie Mac").
The Credit Event Auction process was launched in 2005 by Markit and Creditex in collaboration with ISDA and major credit derivative dealers to facilitate the settlement of credit derivative contracts in the event of a corporate default. Previous auctions were held for Quebecor World Inc., Movie Gallery, Collins & Aikman, Delta Air Lines, Northwest Airlines, Delphi Corporation, Calpine Corporation, Dana Corporation and Dura.
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For more information please contact:
Markit
John Dooley
Vice President, Corporate Communications
Tel: +1 212 205 1310
Email: john.dooley@markit.com
Creditex
Annette Bronkesh
Bronkesh Associates
Tel: +1 973 778 8648
Email: annettec@att.net
About Markit
Markit is a financial information services company with more than 1,000 employees in Europe,
For more information, see www.markit.com
About Creditex
Creditex is a global market leader and innovator in execution and processing of credit derivatives. The company operates a hybrid model of voice and electronic execution, and was the first to successfully launch electronic trading for CDS in 2004. In addition to its core execution business, Creditex has two operating subsidiaries, T-Zero and Q-WIXX, which provide additional electronic processing and execution services in the CDS space. Creditex Group is a wholly-owned subsidiary of IntercontinentalExchange, Inc. (ICE).
For more information, see www.creditex.com