The draft, which aims to resolve a dispute over the deliverability of some USD3.1 billion non-index contingent-convertible notes (DW, 12/26), deems the 6% contingent convertibles due 2014 deliverable obligations, and the 7.75% contingent convertibles due 2015 not deliverable. "The solution smacks of a compromise, but it is one everyone is happy with," said a lawyer representing dealers. "The draft published on ISDA's website is fully endorsed by the dealers."
It is unclear how clients are responding to the draft--lawyers said it was difficult to get them on the phone over the holiday week--but dealers are busy calling their clients "The situation is still fairly fluid," a lawyer said. "But it needs to get resolved pretty quickly."