Credit Suisse AT1 bondholders sue Switzerland over $17bn wipeout

Case filed in New York court

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 ...