Categories: Market

Several CS bond holders go to Federal Administrative Court

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Several CS bond holders have filed complaints with the Federal Administrative Court. They want to defend themselves against the fact that AT1 bonds are worthless due to the takeover of CS by UBS. (icon image)

Bondholders defend themselves against a total default on their subordinate AT1 bonds. A court spokesperson on Thursday said that at the AWP’s request, four complaints regarding the affected CS bonds were received by the Federal Administrative Court on Wednesday, adding “several” more complaints on Thursday (today). As the complaint period continues, new complaints can be added.

The spokesperson said that how many complaints are currently being addressed is still being evaluated. The court did not want to disclose who the plaintiffs were and the size of the bonds affected. The Bloomberg news agency first reported on the matter on Thursday.

CS bondholders are taking action against the actions of the Swiss Financial Market Supervisory Authority (Finma) with their complaints. As part of the urgent takeover of CS by UBS, the subordinate of Additional Tier 1 bonds (AT1) had ordered impairment. As a result, bonds with a total value of approximately CHF 16 billion were declared worthless.

It was already announced over the weekend that the Federal Ministry of Finance (FDF) received two lawsuits from bondholders on the same issue. The FDF did not want to give any details on the content of these ongoing transactions to the Keystone-SDA news agency on Sunday. “SonntagsZeitung” had covered this.

The bondholders are demanding that the federal government be held responsible for losses incurred as part of the ordered takeover of CS. The depreciation of subprime bonds has sparked many protests internationally as well. Investors in the US and Singapore are also considering filing a lawsuit against Swiss authorities, according to media reports.

(SDA)

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