RadioShack Swaps Payout Ruling Sought After Default Claim
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A committee of dealers and investment firms was asked to rule whether buyers of derivatives protecting against a RadioShack Corp. default should be paid.
The group was asked whether a so-called failure-to-pay credit event occurred after the company failed to honor a claim by Salus Capital Partners LLC that the company must pay the debt immediately because it breached terms of a $250 million loan, the International Swaps & Derivatives Association said on its website yesterday. Such a determination would trigger payouts on $584 million of credit-default swaps insuring against losses on the company’s obligations.