Credit Suisse AT1 bondholders may take legal action, say lawyers
21/03/2023 - 11:16am
A number of Credit Suisse Additional Tier 1 (AT1) bond holders, who saw their investments written off completely under the terms of rival UBS' rescue of the stricken bank, are talking to lawyers about possible legal action, according to a report by Reuters.
The report cites law firm Quinn Emanuel Urqhart & Sullivan as saying on Monday that it is in discussions with unnamed bondholders representing a "significant percentage" of the total $17bn AT1 notional value.
Under the terms of the rescue deal, Credit Suisse AT1 bondholders are to get nothing, while shareholders, who usually rank lower than bondholders in payouts related to financial collapses, are to receive $3.23 billion.