Selecta Credit Swaps Set to Pay Out on KKR-Led Debt Overhaul

Credit insurance on Selecta will pay hedge funds and investment firms as the Swiss vending machine operator overhauls its debt.

About $100 million of swaps will be settled after the KKR & Co.-owned company filed for Chapter 15 bankruptcy protection in the U.S. last week, according to a statement Monday from the CDS Determinations Committee. The contracts are in a bankruptcy credit event and the exact level of payout will be settled at an auction at a later date, the panel ruled.

It will be the sixth payout from credit derivatives in Europe this year as the coronavirus pandemic sends ...