Credit Suisse AT1 bondholders sue Switzerland over $17bn wipeout

Case filed in New York court

Valeria Martinez
clock • 2 min read

Holders of Credit Suisse AT1 bonds have sued Switzerland over the decision to wipe out $17bn of debt as part of the government-orchestrated takeover of the bank by rival UBS in March last year.

A case against the Swiss Confederation was filed in the US District Court for the Southern District of New York on Thursday (6 June) by litigation firm Quinn Emanuel Urquhart & Sullivan. The case stems from Switzerland's decision on 19 March 2023 to order a write down Credit Suisse's AT1 bonds. This directive, which reduced the bonds' value to zero, is being challenged as an unlawful infringement on the property rights of the AT1 bondholders. Holders of $1.7bn Credit Suisse AT1 bonds sue Swiss regulator According to the law firm, Switzerland abandoned its regulatory role and acted ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Bonds

Green and social bond volume hits quarterly record of $272.7bn

Green and social bond volume hits quarterly record of $272.7bn

Climate Bonds Initiative report

Cristian Angeloni
clock 20 June 2024 • 2 min read
Fixed income funds suffer first net redemptions since October 2023

Fixed income funds suffer first net redemptions since October 2023

Second-worst figure on record

Cristian Angeloni
clock 06 June 2024 • 3 min read
Deep Dive: Tight credit spreads on US corporates heightens domestic volatility risk

Deep Dive: Tight credit spreads on US corporates heightens domestic volatility risk

Role remains in adding duration

Eve Maddock-Jones
clock 24 May 2024 • 3 min read
Trustpilot