Japanese lawsuit pending on CS bonds

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Law firm Masuda & Partners wants to bring together as many AT1 creditors as possible to apply for international arbitration against Switzerland.

The law firm invited AT1 creditors to a briefing on Monday. Japanese citizens or companies established or organized under Japanese law can participate. All creditors wishing to participate in arbitration by the end of May must be registered. Masuda & Partners is working with Singapore law firm Drew & Napier on this issue.

The lawyers apparently want to argue that the investment protection agreement between Switzerland and Japan has been violated. Such bilateral agreements aim to provide foreigners with legal protection for their direct investments in the other country.

“NZZ am Sonntag” (NZZaS) writes that in the event of a dispute, investors can file a complaint directly with an international arbitration court. As these are treaties under international law, the “host state” cannot escape its obligations through national legislative options.

According to NZZaS, the majority of foreign creditors whose homeland has concluded an investment protection agreement with Switzerland are likely to both participate in an arbitration proceeding and file a complaint against Finma’s decision. Finma represents several creditors before the Federal Administrative Court.

As part of the takeover of troubled Credit Suisse by UBS, instructed by the authorities on March 19, CS’s Additional Tier 1 bonds (AT1) with a face value of approximately CHF 16 billion were declared worthless.

Numerous law firms have already announced that they will take action. Complaints on behalf of more than 1,000 bondholders against the financial market supervisory agency Finma’s decision were filed in St. It was held at the Federal Administrative Court in St. Gallen.

(SDA)

Source :Blick