Dura Automotive Systems has become the fourth auto supplier to default and go through the index cash settlement auction since June 2005. The firm was unable to meet a $17.3 million interest payment obligation on its April 2012 bond, prompting Standard & Poor’s to cut the issue’s rating to D.
The Dura auction will follow a revised protocol that will allow for cash settlement of single-name and tranche positions, subject to the market approving Isda’s proposed amendments.
Dura is part of the CDX HY
The week on Risk.net, July 7-13, 2018Receive this by email