Ardagh CDS Holders Set for $174 Million Payout After Auction

Holders of Ardagh Group SA’s credit default swaps are set for a payout worth around $174 million following a debt restructuring that saw unsecured bondholders take over the Irish packaging firm.

Notes issued by Ardagh Packaging Finance Plc were valued at 33.9 cents on the euro in an auction to settle the insurance-like contracts tied to them, according to a notice on the Creditfixings website. CDS holders will receive a payout equal to 66% of face value, effectively the difference between the auction price for the notes and their face value.