As part of the deal to save Credit Suisse from a potential collapse, the agreement that was cut for UBS to take over the bank included a write-down to zero of AT1 (Tier 1) bonds. This means holders will receive nothing for the securities.
Following the news, the litigation firm Quinn Emanuel Urquhart & Sullivan has put together a team of lawyers from Switzerland, the US, and the UK to fight the decision on the bonds.
According to a note from the law firm’s representatives, they are in discussions with some holders of the Credit Suisse’s AT1 capital instruments, representing a significant percentage of the total notional value of AT1 instruments, about possible legal actions.
A call for bondholders is expected to take place on Wednesday, 22 March, at which representatives from the firm will possible options for bondholders.
Quinn Emanuel was previously engaged with a similar situation in regard to the failure of Spain’s Banco Popular.