CS AT1: Japanese investors file suit against Switzerland
Keystone-SDA
A group of Japanese investors has taken legal action against the Swiss government following the write-down of bonds issued by Credit Suisse, which was acquired by competitor UBS. This is only the first wave of legal action, according to their law firm.
The 184 investors have filed a request for arbitration with the International Centre for Settlement of Investment Disputes (ICSID), as announced on Thursday by their law firm, Drew & Napier. They accuse the Swiss government of violating the free trade agreement between the two countries by ordering the write-down of more than CHF16.5 billion worth of AT1 bonds when Credit Suisse was rescued in March 2023.
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The investors claim to have been treated unfairly and arbitrarily, and to have suffered de facto expropriation. “The plaintiffs hold bonds worth more than $138 million,” the Singapore law firm told new agency AWP.
When contacted, the Swiss government had no immediate reaction. This is only the first wave of lawsuits, with others expected in the coming months. According to Drew & Napier, the firm represents a total of around 560 Asian bondholders in Japan, Hong Kong and Singapore, who are claiming losses in excess of $300 million.
Adapted from French by DeepL/ac
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