One of Singapore’s largest law firms is set to file claims against the Swiss government by the end of the year, seeking compensation for hundreds of Asian investors whose Credit Suisse AT1 bonds were wiped out in 2023, Bloomberg reported today.
Drew & Napier will begin with claims for Japanese bondholders, followed by those from Hong Kong and Singapore, said Mahesh Rai, a director at the firm representing about 560 bondholders across the three jurisdictions.
A Swiss court earlier this month found that the March 2023 writedown of 16.5 billion Swiss francs (RM88 billion) of AT1 bonds — part of a government-brokered rescue of Credit Suisse by UBS Group AG — was unlawful.
“This is the first step in righting the wrong done to our clients,” Rai said, noting the case aims to recover losses totalling roughly US$300 million from the Swiss government.
Switzerland’s finance ministry declined to comment when approached by Bloomberg.
The complete writedown of the AT1 bonds had sparked outrage, as shareholders typically absorb losses before bondholders.
Under bilateral investment treaties with Singapore, Japan, and Hong Kong, investors are offered protections against expropriation and unfair treatment by governments.
Drew & Napier had previously sent trigger letters to Switzerland in December 2024 and May this year, as required under the treaties.
The firm is now formally initiating the claims after a six-month negotiation period, Rai said.
Rai added that the firm remains “positive about the prospect of success” and continues to sign on affected bondholders.
Litigation-funding firm Omni Bridgeway Ltd has agreed to cover the investors’ legal fees.