AllianceBernstein to sue Switzerland over US$17bil Credit Suisse debt loss

AllianceBernstein to sue Switzerland over US$17bil Credit Suisse debt loss

Financial Times reports that the US asset manager is preparing to sue Switzerland for US$225 million.

Switzerland Credit Suisse
Credit Suisse collapsed in 2023 and was taken over by UBS in a rescue orchestrated by Swiss authorities. (AP pic)
TENNESSEE:
US asset manager AllianceBernstein is preparing to sue Switzerland for US$225 million after UBS’ takeover of Credit Suisse last year led to the erasure of US$17 billion of the failed bank’s debt, the Financial Times reported today.

AllianceBernstein is set to be added as a plaintiff in a case brought by law firm Quinn Emanuel Urquhart & Sullivan on behalf of Credit Suisse bondholders in January, the report said, citing people familiar with the matter.

UBS and AllianceBernstein did not immediately respond to Reuters’ requests for comment.

Earlier this year, a group of Credit Suisse bondholders holding US$82 million worth of the failed bank’s Additional Tier 1 (AT1) debt had filed a lawsuit against Switzerland seeking compensation.

Credit Suisse collapsed in 2023 and was taken over by UBS in a rescue orchestrated by Swiss authorities.

As part of that operation, the Swiss regulator, the Financial Market Supervisory Authority (FINMA) wrote down about US$17 billion of Credit Suisse’s AT1s, angering bondholders.

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