Movie Gallery in credit event auction
Troubled US video store chain Movie Gallery has seen the price of its loan derivatives fixed at 91.5% following a credit event auction.
The company failed to make a September 10 interest payment on its first-lien loan, triggering a ‘failure to pay’ credit event on loan CDS contracts referencing the company. The company was also a constituent of the LCDX, a credit default swap index referencing US leveraged loans.
Bank of America, Bear Stearns, Citibank, Credit Suisse, Deutsche Bank, Goldman Sachs, JP Morgan, Lehman Brothers, Merrill Lynch, Morgan Stanley and UBS all participated in the auction by submitting bids, physical settlement requests and limit orders.
See also: Dura auction breaks new ground
Isda AGM Singapore: Dana CDS index protocol published
Delphi credit event fixing set at auction
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