March 22 (Bloomberg) -- Sellers of credit-default swaps on Elpida Memory Inc.’s bonds may have to pay 79.875 percent of the notes’ face value to settle contracts triggered by the chipmaker’s bankruptcy filing.
Dealers set an initial value of 20.125 percent at an auction for Elpida bonds today, according to administrators Markit Group Ltd. and Creditex Group Inc. The auction is being held under the rules of the International Swaps & Derivatives Association and a final rate will be determined at 2 p.m. in Tokyo.
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