UBS and Credit Suisse AT1 Debt Dispute
A Swiss court's decision to revoke a regulatory order for Credit Suisse to write down capital instruments ahead of its merger with UBS in March 2023 may lead to compensation for bondholders.
According to lawyers and bankers, this ruling could leave UBS on the hook for billions in liabilities. However, the exact outcome remains uncertain.
A Swiss court’s decision to revoke a regulatory order for Credit Suisse to write down capital instruments ahead of its forced marriage to UBS in March 2023 opens avenues to compensation for bondholders of the failed bank.
UBS executives and shareholders are eager to determine the potential payout. The court's cancellation of Finma’s 2023 writedown has created a complex situation.
Author's summary: UBS may face billions in liabilities due to court ruling.