Isda annouces protocol settlement for Tembec

On Friday, Isda announced its plan to help settle credit derivatives trades involving a Canadian forest products company, Tembec Industries. A consistent name in the North American high-yield indices (series 1 to 9), it filed a Chapter 15 petition in the US on 4 September.

The 2008 Tembec CDS Protocol will permit cash settlement of credit derivatives based on a price established at an auction. Adminstered by Markit and Creditex, the auction is scheduled to take place on 2 October 2008 and will determine the final price for Tembec Industries bonds.