Senior investors recovery 70% after CDO^2 liquidation

February’s liquidation of CDO of ABS Gennaker I CDO resulted in 70% recovery for senior noteholders, according to a ratings announcement today by Moody’s. The deal was created in 2005 by Solent Capital and invested in mainly senior notes from asset-backed securities and other CDOs.

As Creditflux reported at the time, a majority of the assets sold by liquidation agent Federated are understood to have been bought by the controlling class of investors in the deal. See CDO liquidation results in round-trip sales.

According to Moody’s, final distribution of the sale proceeds to investors was carried out on 29 March, with all note holders below the class A1 liabilities wiped out. Among the notes sustaining a 100% loss are the $25.8 million class A2 notes, which were originally rated triple A by Moody’s and Standard & Poor’s. The deal triggered an event of default in April 2009.