Credit default swap holders in Ardagh Group SA are set to receive a 66% payout on their face value following a significant debt restructuring. The Irish packaging firm's unsecured bondholders have taken control of the company, triggering the CDS settlement auction that determined the recovery rate.

The restructuring marks a major shift in ownership for the Dublin-based packaging company, which produces glass and metal containers for major consumer brands. The 66% recovery rate represents a substantial return for CDS holders who had hedged against the company's debt obligations. This outcome suggests the restructuring was handled in a way that preserved significant value for creditors despite the change in control.

For Ardagh, the debt restructuring appears to have achieved its primary goal of reducing leverage and stabilizing the company's capital structure. The successful CDS settlement indicates market acceptance of the new ownership structure, potentially clearing the way for the company to move forward with its operations under the new bondholders' control. The 66% payout provides closure to a complex restructuring process that has reshaped one of Europe's largest packaging companies.