A credit event has occurred. CDS will pay off, subject to an auction procedure on March 19th.
I’ve seen endless chatter saying that the restructuring was done in a way to avoid paying off the CDS. I wonder whether all those opinion-slingers will now print apologies.
I won’t be holding my breath.
Just proof once again that it’s more important to keep the casino open than to avoid paying one big winner.
The ISDA FAQ’s on the determination, and other comments, are available here.