Isda committee considers failure to pay by Indian convertibles issuer

Isda’s credit derivatives determinations committee is considering a request by Citi to rule on a default by Cranes Software International. According to a notice sent to noteholders by the bond’s trustee, the Indian software company failed to respond to an acceleration notice in December which made its bonds immediately payable.

The firm's annual report for 2010 says that it had over 4 billion rupees ($91 million) in secured loans and around 4.5 billion rupees ($102 million) in unsecured loans as over 31 March, 2010.

The company also uses foreign currency forward contracts and currency options to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and forecasted transactions.