A group of Credit Suisse AT1 bondholders in Singapore seeking to sue Switzerland is reportedly eyeing a litigation funder to support their case.
Lawyer representing a group of Singaporean Credit Suisse AT1 bondholders are seeking a litigation funder, according to a «Business Times» report citing WilmerHale partner Jonathan Lim, to support a class action suit against the Swiss government over the debt wipeout.
«If the bondholders are successful, they will not have to pay for the suit and will have a chance of getting perhaps 15 percent to 20 percent of their monies back,» said Lim, though he noted that the process could take up to five years.
The bondholders claim that the AT1 bond write-down breached rights that are protected under a free trade agreement signed in 2003 between Singapore and a bloc of four European countries, including Switzerland.
Third Party Sponsors
According to Lim, he has been in talks on behalf of the bondholders with some third party sponsors indicating interest in funding the litigation though none have officially committed.
In litigation funding, a third party finances part or all of the expenses involved in a legal dispute in exchange for a share of the proceeds recovered from the subsequent resolution.
