CDS tested to the limit

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Never before has the restructuring of a French media firm caused so much trouble for dealers. On June 15, Paris-based Thomson announced it had entered into a waiver and forbearance agreement with investors to defer payment of principal on its 6.05% senior notes, later declaring on July 24 it had signed a restructuring agreement with the majority of senior creditors. In the credit derivatives market, the agreement presented an immediate test for the small bang protocol, which came into effect