Credit Suisse Bondholders Sue Switzerland Over $82 Million AT1 Debt

Jun 6, 2024, 06:12 PM

A group of Credit Suisse bondholders have filed a lawsuit against Switzerland in a Manhattan federal court. The bondholders, who hold $82 million worth of Additional Tier 1 (AT1) debt, allege that the Swiss government prioritized national interests over legal obligations when their bonds were voided during UBS's rescue of Credit Suisse last year. The lawsuit, filed in a New York court, seeks compensation for the bondholders whose investments were wiped out in the government-brokered deal, according to US court filings.