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Greek CDS Auction Initial Market Midpoint Set at 21.75

The first phase of an auction to settle credit default contracts underwritten on Greek sovereign debt determined an Initial Market Midpoint of 21.75, Creditex, according to Dow Jones citing Markit.
This value is the result of the initial bidding process and restricts the possible final price for the auction.
This price will be futher refined until the final price is determined, at 1530 GMT, which will determine the recovery value of Greeks bonds, and consequently how much investors, who bought protection against default, will receive.
Buyers of CDS protection will then receive face value, or “par,” minus this price.
For an Initial Market Midpoint of 21.75, holders of credit default swaps on Greek sovereign debt would theoritcally receive 78.25 as a payout.
Creditex and data provider Markit are running the Greek CDS auction.
The net open interest in the auction was EUR291.6 million to sell. This means that there are more sellers than buyers of Greek bonds in the auction and as a result of this mismatch, the final price could be lower than the Initial Market Midpoint.
A net $3.2 billion of CDS contracts on Greek sovereign debt are outstanding, according to the Depository Trust & Clearing Corp.
Greece completed a restructuring of its sovereign debt, forcing bondholders to accept deep losses. ISDA΄s Determinations Committee ruled that a credit event had occurred as a result of the country using legal means to coerce private investors to accept its debt restructuring.
(source: Dow Jones, Capital)

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