Cemex debt swaps triggered by restructure, ISDA says
Credit-default swaps on Cemex SAB, the largest cement maker in the Americas, were triggered by a so-called restructuring credit event, according to the International Swaps & Derivatives Association.
The ruling was made by a group of independent arbitrators after a committee of credit-default swap dealers and investors was unable to agree whether to reimburse investors for the debt insurance contracts, according to New York-based ISDA. It’s the first time a regional committee has passed a ruling to an external review panel since the groups were created this year.
Cemex extended the maturities on $15 billion of debt in August. The independent panel deemed the refinancing to be an event allowing buyers of default swaps to demand payment, ISDA said in a statement on its Web site.
The Americas determinations committee will vote whether to settle the contracts at auction, ISDA said.
Credit-default swaps pay the buyer face value in exchange for the underlying securities or the cash equivalent should a company fail to adhere to its debt agreements.
Published under Cement News
