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, according to a statement.
The Credit Derivatives Determinations Committees (DCs) said in a statement posted on its website on Tuesday its EMEA panel determined at a meeting on Monday that a bankruptcy credit event had occurred.
That ruling 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). (Reporting by Josephine Mason and Karin Strohecker)