Arini Contests Use of Ardagh’s Unsecured Bonds in CDS Auction

Arini Capital Management is fighting the inclusion of senior unsecured bonds belonging to Irish packaging firm Ardagh in a credit-default swap auction, a process which determines the payout for buyers of the default protection.

Arini rejects the idea that the notes issued by Ardagh Packaging Finance Plc can be considered so-called deliverable obligations, according to a statement Tuesday. The term refers to defaulted debt instruments that can be “delivered” into the auction, and that help set the price.

As one of the largest creditors to Ardagh, Arini has played a major role in the firm’s debt restructuring. It initially sued ...