Swiss AT1 Decision Opens Doors for Singapore Law Firm Filing
A major law firm in Singapore is set to file claims against the Swiss government over the Credit Suisse AT1 wipeout following a recent court decision that the move was unlawful.
Drew & Napier is set to file claims against Switzerland's government over the write-down of 16.5 billion Swiss francs ($20.8 billion) in Credit Suisse AT1 bonds under an investment treaty that offers protections to individuals and companies carrying out investments against unfair treatment by governments.
According to a «Bloomberg» report citing Mahesh Rai, director of dispute resolution at the Singapore-based law firm, the recent decision by the Swiss Federal Administrative Court that the write-down was unlawful and should be revoked is the «first step in righting the wrong done to our clients».
$300 Million of Losses
The case will seek to recover losses of around $300 million from the Swiss government. Drew & Napier will look to pursue investment treaty claims for Japanese bondholders first, followed by Hong Kong and Singapore investors. Litigation-funding firm Omni Bridgeway has agreed to pay for the legal fees of its clients.
According to Rai, the firm is «positive about the prospect of success» and is still signing on more affected AT1 bondholders.
