Syncora CDS worth around 15 pct in final auction

NEW YORK, May 27 (Reuters) - Credit default swaps on bond insurer Syncora Holdings (SYCRF.PK: Quote, Profile, Research) are worth around 15 percent of the amount of debt they insure, based on the final results of an auction to determine the value of the contracts, Creditex and Markit said on Wednesday.

That means that sellers of protection will have to pay out about 85 percent of the sum insured, or $8.5 million for every $10 million insured.

Payments on the swaps were triggered after Syncora, formerly known as SCA, suspended payments at the direction of the New York Insurance Department to allow it to replenish its finances and turn a policyholders' deficit of $2.4 billion into a state-required minimum surplus of $65 million.

Net volumes of around $1.14 billion in credit default swap protection are outstanding on Syncora's bond insurance arm, Syncora Guarantee Inc, according to the Depository Trust & Clearing Corp. The swaps are backed by debt the company guarantees. (Reporting by Karen Brettell and Dena Aubin; Editing by Theodore d'Afflisio)