Business Express is an online portal that covers the latest developments in the world of business and finance. From startups and entrepreneurship to mergers and acquisitions, Business Express provides reporting on the stories that matter most to business leaders and decision-makers.The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
2023 03 21T183410Z 3 LYNXMPEJ2K0P9 RTROPTP 4 GLOBAL BANKS CREDIT SUISSE UBS
2023 03 21T183410Z 3 LYNXMPEJ2K0P9 RTROPTP 4 GLOBAL BANKS CREDIT SUISSE UBS

Some Credit Suisse AT1 bondholders seek legal advice -law firms


By Laura Matthews and Chiara Elisei

(Reuters) -Law firm Pallas Partners and a Swiss counsel are working on possible legal action for some Credit Suisse bond investors whose holdings were wiped out following the bank’s takeover by UBS Group AG, Pallas Partners said.

London-based Pallas Partners told Reuters on Tuesday it was in contact with a number of institutional and hedge fund investors in Credit Suisee Additional Tier 1 (AT1) bonds, with a view of forming a group and exploring litigation options in the Swiss courts as well as London and New York.

“The structure of the (takeover) deal is unprecedented, subverting and wiping out the AT1s and prioritising the equity,” said Natasha Harrison, Pallas Partners’ founder and managing partner.

She said the aim was to build a litigation strategy to help those investors looking to recover their losses.

Under the UBS-Credit Suisse deal, holders of Credit Suisse AT1 bonds will get nothing, while shareholders, who usually rank below bondholders in terms of who gets paid when a bank or company collapses, will receive $3.23 billion.

Separately, some holders of Credit Suisse’s bonds have approached law firm Korein Tillery to also assess whether they have a case against the Swiss authorities’ decision to wipe out their holdings as part of the UBS Group AG deal.

George Zelcs and Chris Burke, partners at Korein Tillery, a boutique law firm specialising in complex litigation, said fewer than a dozen non-U.S. bondholders had approached them to discuss options. The firm has not yet been hired.

Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!


By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email.

Neither firm named the bondholders.

Their discussions come after law firm Quinn Emanuel Urquhart & Sullivan said on Monday it was in discussions with Credit Suisse AT1 bondholders representing a “significant percentage” of the total notional value of the instruments.

A call with bond holders is scheduled to take place on Wednesday, according to Quinn Emanuel.

Switzerland’s Federal Department of Finance said it would not comment on a hypothetical situation.

Korein lawyers are examining the language of the AT1 bond contracts and whether regulators have the authority to wipe out the bonds without first doing the same for equities, the lawyers said.

(Reporting by Laura Matthews and Chiara Elisei; additional reporting by Noele Illien; Editing by Chizu Nomiyama, Dhara Ranasinghe and Emelia Sithole-Matarise)

 

Recent Post: