Global law firm Withers is the latest to join the legal wave against the Swiss decision to write down AT1 debt issued by Credit Suisse.
Withers is acting in Singapore on behalf of over 100 holders of Additional Tier 1 (AT1) bonds issued by Credit Suisse to sue the Swiss Financial Market Supervisory Authority (Finma), according to a «WealthBriefings» report citing an announcement from the law firm.
The lawsuit involves more than S$100 million ($75 million) with investors including high net worth individuals, accredited investors and corporate investment companies based across Asia.
Singapore Partner
Wither’s lawsuit is being led by Singapore-based partner Shaun Leong and the team will challenge Finma based on investment treaty protection rights from a free trade agreement between the city-state and Switzerland.
«The decision to target the investments of AT1 bondholders, whilst taking steps to protect shareholders, goes against legitimate expectations of investors and the spirit of the international free trade agreement,» Leong said.
«We are confident that our clients are in a strong position to assert their rights and that we can reach a good solution which gives reassurance to international investors in Swiss institutions.»
Global Efforts
Withers said it has held town hall events in Singapore, London and New York to inform bondholders of their rights and potential recourse to recoup losses. The firm’s UK and US teams are currently working with clients to assess their position and advise on potential remedies.
«We welcome any other bondholders that are concerned about their losses to make contact about their options,» Leong added.
According to the Swiss government, the 16 billion francs ($18 billion) AT1 wipeout was justified as an emergency law was passed to authorize Finma to take such action.
