Auction decided for McCarthy & Stone LCDS -Markit

LONDON May 11 (Reuters) - Holders of McCarthy & Stone loan credit default swap contracts (LCDS) will hold an auction to settle the value of payments, Markit said, after Britain's largest retirement home builder said lenders would take control.

McCarthy & Stone said in February that senior lenders had accepted a reduction in its debt burden in exchange for ownership in a debt-for-equity swap.

Dealers voted for a credit event auction on the company, which is a member of the Markit iTraxx LevX Senior Series 2 index, Markit said on Monday. The auction date has yet to be determined, it added. (Reporting by Jane Baird; Editing by Rupert Winchester)