09 October 2020 by jbchevrel
Selecta is a Swiss vending machine operator, #1 in Europe, owned by fund KKR. Today the question was submitted to the CDS Determinations Committee, which will decide whether credit derivatives on Selecta are in a credit event. The panel will meet on Oct 12 to decide whether a bankruptcy event has taken place. This comes after Selecta Finance UK Ltd., 100% owned by Selecta Group, has filed for Chapter 15 bankruptcy protection in the Southern District of Texas. On Oct 2, it was reported that Selecta was to poll creditors and file chap 15, after they won permission from a UK court to do so. There is about $100 million of CDS outstanding on Selecta, according to latest data from ISDA. Today we close the CDS at 47%. This is consistent with 5.875 Feb 2024 bonds at 53%. As a result, Fitch Ratings' trailing 12 months default rates for EMEA corporate high-yield bonds and loans rose to 3% and 2.2%, respectively, at end-September. On top of Selecta, there was the restructuring of Europcar, Garrett Motion's filing for Chap 11, Swissport's loan default and Cassini's application to France's "sauvegarde" bankruptcy protection scheme.