Markit dealers vote to hold CDS auctions for Visteon, R.H. Donnelley

By Angela McDaniels

Tacoma, Wash., June 1 - Markit LCDX index dealers have voted to run credit event auctions to facilitate the settlement of loan-only credit default swap trades referencing Visteon Corp. and R.H. Donnelley Inc., according to a news release from Markit.

A separate auction will be held to settle regular CDS trades referencing Visteon.

The decision was made in response to the bankruptcy filings made by the companies last week.

The companies are constituents of series 8, 9, 10 and 12 of the Markit LCDX index, and Visteon is a constituent of the Markit CDX North America High Yield index series 4 through 12 and Markit CDX North America Investment Grade series 1.

The terms for the LCDS auction, including the date, will be determined by Markit LCDX dealers according to rules published on the International Swaps and Derivatives Association, Inc. web site.

Markit and Creditex are the administrators of the credit event auctions.

Visteon is a Van Buren Township, Mich., automotive supplier. It filed for bankruptcy on Thursday, and its Chapter 11 case number is 09-11726.

R.H. Donnelley is a Yellow Pages and online local commercial search company based in Cary, N.C. It filed for bankruptcy on Friday, and its Chapter 11 case number is 09-11833.

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