2006 Dura CDS Protocol
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The 2006 Dura CDS Protocol (the “Protocol”) relates to settlement issues concerning Dura Operating Corp. ("Dura"), a U.S. company that filed for bankruptcy on October 30, 2006. Dura is an auto parts supply company that is included in various credit derivative indices, including those published by Dow Jones CDX and TRAC-X, as well as the subject of single name trades and other credit derivative transaction types. The purpose of the Protocol is to offer market participants an efficient way to address the settlement issues relating to credit derivative transactions referencing Dura. The Protocol will offer institutions the ability to amend their documentation for various credit derivatives transactions in order to utilize an auction scheduled for November 28, 2006 to determine the final price for certain Dura bonds. Markit Group Limited and Creditex, Inc. will administer the auction. It should be noted that there is no adherence fee required for ISDA members or non-ISDA members submitting Adherence Letters in connection with the 2006 Dura CDS Protocol. The 2006 Dura CDS Protocol is open to ISDA members and non-members. The Protocol will be open between November 8, 2006 and November 17, 2006. |
PLEASE NOTE: THIS PROTOCOL IS CLOSED.
The following documents must be submitted via email to the ISDA office in New York in order to adhere to the 2006 Dura CDS Protocol:
- One signed copy of the Adherence Letter, providing information on the contact person at the Adhering Party.
- One conformed copy of the Adherence Letter. A conformed copy is an exact copy of the signed letter with the name of the person signing the letter typed on the signature line. A signature should not appear on the conformed copy of the letter.
ISDA will only accept email delivery of Adherence Letters. An Adhering Party is not required to send original Adherence Letters to the ISDA offices.
Please submit all Adherence Letters via email to duraprotocol@isda.org. It is critical that both a scanned, signed Adherence Letter, as well as a scanned, conformed Adherence Letter is submitted. Entities will not be deemed to have adhered to the Protocol until both the signed and conformed Adherence Letters are submitted by email in accordance with the Adherence Period.
No other documents are required in order to adhere to the 2006 Dura CDS Protocol. Supporting documentation, such as board resolutions or a list of authorized signatures, can be provided and will be held in safekeeping by ISDA, but it is not necessary to submit such documents in order to adhere to the Protocol. Access to supporting documentation will only be provided if requested in writing.
The Protocol will open for adherence on Wednesday, November 8, 2006.
Email address for Delivery of Adherence Letters:
duraprotocol@isda.org
Policy Regarding Conformed Copies
A signed copy and a conformed copy of an Adherence Letter must be received in order for ISDA to list a party as having adhered to the 2006 Dura CDS Protocol.
The most common problem experienced in the adherence process for prior Protocols was the failure to include a conformed copy of the Adherence Letter. We remind parties that a conformed copy, together with a signed copy, must be submitted to ISDA in connection with adherence to the 2006 Dura CDS Protocol.
Frequently Asked Questions
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ISDA has prepared this brief summary of frequently asked questions to assist in your consideration of the 2006 Dura CDS Protocol (the “Dura Protocol”). THIS FREQUENTLY ASKED QUESTIONS DOES NOT PURPORT TO BE AND SHOULD NOT BE CONSIDERED A GUIDE TO OR AN EXPLANATION OF ALL RELEVANT ISSUES OR CONSIDERATIONS IN CONNECTION WITH THE DURA PROTOCOL. PARTIES SHOULD CONSULT WITH THEIR LEGAL ADVISERS AND ANY OTHER ADVISER THEY DEEM APPROPRIATE PRIOR TO USING OR ADHERING TO THE DURA PROTOCOL. ISDA ASSUMES NO RESPONSIBILITY FOR ANY USE TO WHICH ANY OF ITS DOCUMENTATION OR OTHER DOCUMENTATION MAY BE PUT. This Frequently Asked Questions webpage is divided into three sections: (i) questions relating to the submission of Adherence Letters; (ii) questions relating to the election of an entity not to participate in the Dura Protocol; and (iii) questions relating to the substance of the Dura Protocol itself. Adherence Letter Submission Process How do I send in my Adherence Letter? The Adherence Letter(s) should be on your institution’s letterhead. Nothing in the form Adherence Letter available on ISDA’s website may be changed with the exception of completing the details of your institutional name, date and signature block. You are not required to send your original Adherence Letter(s) by mail to ISDA. What is a conformed copy? You must also submit an executed, or signed, copy of the Adherence Letter in addition to the conformed copy of the Adherence Letter. ISDA keeps the executed copy of the Adherence Letter for its files and does not share the executed copy with anyone else. Who is an authorized signatory? What if I am an investment or asset manager – how do I complete the signature block? However, in order for Physical Settlement Requests to be calculated by Participating Bidders, each such investment/asset manager is required to provide a list of all funds and accounts that it acts on behalf of to each Participating Bidder that has (or whose affiliate has) entered into a Master Agreement with any of those funds or accounts. As provided in paragraph (1) of the Auction Methodology set out in Exhibit 3 of the Dura Protocol, on the Business Day prior to the Auction Date, the Administrators (Markit and Creditex) will publish a list of the Participating Bidders on their respective websites. In addition, contact details will be available for the Participating Bidders through their Adherence Letters on the ISDA website. Can I change the text of the Adherence Letter? Does it cost any money to adhere to the Dura Protocol? Entities Electing Not to Adhere to the Dura Protocol Scope of Transaction Coverage Relating to the Dura Protocol Does adhering to the Dura Protocol affect other credit derivative transactions? What credit derivative transactions are not affected by adhering to the Dura Protocol? Auction When is the auction? Cash Settlement Date and Accruals How are accruals calculated? |