General Growth Properties loan CDS worth 44.25 percent
NEW YORK, May 13 (Reuters) - Credit default swaps insuring the loans of General Growth Properties Inc (GGWPQ.PK: Quote, Profile, Research) were found to be worth 44.25 cents on the dollar in an auction held on Wednesday to determine the value of the contracts, said auction administrators Markit and Creditex.
That means that sellers of protection on the debt will need to pay out $5.57 million for each $10 million in loans they insured.
Payments were triggered on the contracts after the second -largest U.S. mall owner filed for bankruptcy protection on April 16. Credit default swaps are used to insure against non payment of debt or to speculate on a company's credit quality.
(Reporting by Karen Brettell; Editing by Diane Craft)
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