Short shrift for CDS holders

CDS investors step up the fight for their rights

There is no shortage of recent restructuring situations where succession issues have arisen. But in most the CDS lobby has had scant influence. Last year’s corporate reorganization at WPP led to speculation that there would not be a deliverable into the CDS. A guarantee remains over notes until 2014, but there remains a chance that the restructured company might novate those bonds before then. In another recent case, Rentokil Initial added a new top parent to its company structure (Rentokil Initial 2005).