(Adding details throughout)
LONDON, Sept 24 (Reuters) - A panel of bankers has ruled
that some investors in Thomas Cook's credit derivatives
worth as much as $2.7 billion are eligible for a payout
following the world's oldest tour operator's collapse on Monday.
The Credit Derivatives Determinations Committees (DC) said
in a statement posted on its website on Tuesday that its EMEA
panel had determined at a meeting on Monday that a bankruptcy
credit event had occurred.
That ruling by the DC, which is made up of representatives
from big banks, means that most holders of Credit Default Swaps
(CDS), instruments used to insure exposure to credit, will get
paid for their bets against the company.
The weekly gross notional value for Thomas Cook's CDS was
$2.69 billion, according to the Depositary Trust & Clearing Corp
(DTCC).
The ruling applies to credit derivative transactions with a
scheduled termination date on or after Sept. 23 and doesn't
apply to transactions with a termination date of Sept. 20, the
statement said.
The judgement comes after hundreds of thousands of
holidaymakers were stranded on Monday by the demise of the
company, sparking the largest peacetime repatriation effort in
British history.
The liquidation marks the end of a British company that
started in 1841 running local rail excursions and grew to
pioneer the family package holiday.
(Reporting by Josephine Mason and Karin Strohecker; Editing by
Mark Potter)
