CDS Panel Quashes Challenge From Arini Over Ardagh’s Auction

The panel that oversees Europe’s credit-default swap market threw out a challenge from Arini Capital Management related to the upcoming CDS auction for Irish packaging manufacturer Ardagh, in a fillip to buyers of the insurance-like default protection.

The EMEA Determinations Committee ruled that Ardagh Packaging Finance’s senior unsecured notes could be delivered into the upcoming CDS auction, according to a statement on Friday. Arini, a seller of Ardagh’s CDS, had challenged the notes’ inclusion, on the grounds that they were bound to be converted into equity under Ardagh’s debt restructuring.

Including the senior unsecured notes raises the chance of ...