Panel Nixes Auction to Settle Russian Railways CDS (1)

The Credit Derivatives Determinations Committee voted Wednesday against holding an auction to settle credit-default swaps linked to Russian Railways JSC, after earlier determining the state-owned company reneged on its debt.

• Thirteen committee members voted against holding the auction, while Credit Suisse Group AG voted in favor
• The panel earlier agreed that a failure-to-pay credit event had occurred after a coupon due March 14 didn’t reach investors by the end of a 10-day grace period
• Outstanding contracts covered a gross $42m of Russian Railways debt / net $21.2m as of April 1, according to DTCC
• The default ruling was ...