financetom
Business
financetom
/
Business
/
Credit Suisse AT1 bondholders sue Switzerland in New York
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Credit Suisse AT1 bondholders sue Switzerland in New York
Jun 6, 2024 12:57 PM

ZURICH (Reuters) - A group of Credit Suisse bondholders holding $82 million worth of the failed bank's Additional Tier 1 (AT1) debt have filed a lawsuit against Switzerland seeking compensation, U.S. court filings on Thursday showed.

Credit Suisse collapsed in 2023 and was taken over by rival UBS in a rescue orchestrated by Swiss authorities. As part of that operation, Swiss regulator FINMA wrote down about $17 billion of Credit Suisse's AT1s, angering bondholders.

Law firm Quinn Emanuel Urquhart & Sullivan, representing the plaintiffs, said the lawsuit had been filed in the U.S. District Court for the Southern District of New York.

Switzerland's finance ministry declined to comment.

The face value of the AT1 bonds held by the plaintiffs in the suit was over $82 million, the filing showed.

AT1 bonds act as a shock absorber if a bank's capital levels fall below a certain threshold, and have been encouraged by regulators since the 2008-09 financial crisis.

In a statement, Dennis Hranitzky, head of Quinn Emanuel's sovereign litigation practice, said that the lawsuit was seeking full compensation for the bondholders.

"Switzerland unnecessarily destroyed $17 billion of AT1 instruments and thereby unlawfully violated the property rights of the holders of these instruments," Hranitzky said.

UBS last week in Switzerland completed the merger of the main parent companies of UBS and Credit Suisse.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Update: Novavax Awaits Decision on Full Approval of Covid Vaccine After FDA Misses Deadline
Update: Novavax Awaits Decision on Full Approval of Covid Vaccine After FDA Misses Deadline
Apr 2, 2025
04:01 PM EDT, 04/02/2025 (MT Newswires) -- (Updates the headline and first paragraph with latest company filing.) Novavax ( NVAX ) said Wednesday it is still awaiting a decision from the US Food and Drug Administration on its biologics license application for its Covid vaccine. The vaccine approval is in limbo after the FDA missed a deadline, but a decision...
What's Going On With Hyperscale Shares Wednesday?
What's Going On With Hyperscale Shares Wednesday?
Apr 2, 2025
Hyperscale Data, Inc. ( GPUS/PD ) stock traded higher on Wednesday after the company announced its subsidiary, Sentium, mined an additional 56 Bitcoin from January to March 2025. What To Know: The new 56 Bitcoin (CRYPTO: BTC) mined this year brings the company’s total holdings to 3,061 since its inception in March 2021. “The company is proud of the Sentinum...
Google agrees $36 million fine for anti-competitive deals with Australia telcos
Google agrees $36 million fine for anti-competitive deals with Australia telcos
Aug 17, 2025
SYDNEY, Aug 18 (Reuters) - Google agreed on Monday to pay a A$55 million ($35.8 million) fine in Australia after the consumer watchdog found it had hurt competition by paying the country's two largest telcos to pre-install its search application on Android phones, excluding rival search engines. The fine extends a bumpy period for the Alphabet-owned internet giant in Australia,...
What Happened To Denali Therapeutics Stock Wednesday?
What Happened To Denali Therapeutics Stock Wednesday?
Apr 2, 2025
Denali Therapeutics, Inc. ( DNLI ) shares traded higher on Wednesday after the company initiated its biologics license application (BLA) for the accelerated approval of Tividenofusp Alfa for the treatment of Hunter syndrome. What To Know: Denali announced that it expects the BLA application to be completed by mid-May. The company is preparing for a potential U.S. commercial launch in...
Copyright 2023-2026 - www.financetom.com All Rights Reserved