Arini Contests Use of Ardagh’s Unsecured Bonds in CDS Auction

Arini Capital Management is fighting the inclusion of senior unsecured bonds belonging to Irish packaging firm Ardagh in a credit-default swap auction, a process which determines the payout for buyers of the default protection.

Arini rejects the idea that the notes issued by Ardagh Packaging Finance Plc can be considered so-called deliverable obligations, according to a statement Tuesday. The term refers to defaulted debt instruments that can be “delivered” into the auction, and that help set the price.