What's Happening?
Drew & Napier, a major law firm in Singapore, is preparing to file claims against the Swiss government following a court decision that deemed the write-down of Credit Suisse's AT1 bonds unlawful. The Swiss Federal
Administrative Court ruled that the write-down of 16.5 billion Swiss francs ($20.8 billion) in AT1 bonds was unlawful and should be revoked. The law firm plans to pursue investment treaty claims for Japanese bondholders first, followed by Hong Kong and Singapore investors. The litigation-funding firm Omni Bridgeway has agreed to cover the legal fees for its clients.
Why It's Important?
The case highlights the potential for international legal challenges against government actions perceived as unfair to investors. The write-down affected bondholders globally, and the legal proceedings could set a precedent for similar cases. The involvement of a litigation-funding firm underscores the financial stakes and complexities involved in such international disputes. Successful claims could lead to significant financial recoveries for affected investors and influence future government decisions regarding bond write-downs.
What's Next?
Drew & Napier is optimistic about the prospects of success and continues to sign on more affected AT1 bondholders. The case could lead to further legal actions from other international investors affected by the write-down. The Swiss government may face increased scrutiny and pressure to address the court's ruling and the claims filed by international investors.
