On September 8, 2011, Markit Group Limited announced that the Markit LCDX dealers voted to hold an auction for single name and index loan-only CDS transactions referencing NewPage Corporation (NewPage). NewPage filed a Chapter 11 petition with the United States Bankruptcy Court for the District of Delaware (the Bankruptcy Court) on September 7, 2011.
On September 19, 2011, Markit Group Limited announced that the Participating Dealers voted not to hold an Auction for purposes of Bullet LCDS or Bullet LCDX transactions referencing NewPage.
NewPage is reported to have repaid the only outstanding loan on the relevant syndicated secured list. As a result, the Eligible LCDX Members do not intend to pursue the development of Auction Settlement Terms for LCDS and LCDX transactions and so no Auction for NewPage will be held. Pursuant to the LCDS Auction Rules published May 22, 2007, the NewPage Auction will be formally abandoned on September 22.