LONDON, Sept 19 (Reuters) - A panel of bankers will not make a decision on whether some investors in Thomas Cook’s credit are due a payout under bankruptcy rules until at least Monday, it said on Thursday.
Following Thomas Cook’s filing for Chapter 15 bankruptcy protection in the United States earlier this week, Credit Derivatives Determinations Committees (DCs) met on Thursday to discuss whether a bankruptcy credit event has occurred.
The DCs, which are made up of representatives from big banks, agreed to meet again at 1100 GMT on Sept. 23 to consider the question further, it said in a posting on its website. It gave no further details.
A ruling from the DCs is key for deciding whether holders of Credit Default Swaps (CDS), instruments used to insure exposure to credit, will get paid for their bets against the world’s oldest travel company.
If the panel rules that a credit event has indeed occurred, it would remove the risk that CDS holders will reject a restructuring plan deal agreed with Chinese shareholder Fosun last month.
Creditors will vote on that rescue plan next week.
Reporting by Josephine Mason; editing by David Evans