Some holders of Credit Suisse AT1 bonds wiped out by the bank's planned merger with UBS have instructed law firm Quinn Emanuel Urquhart & Sullivan to represent them for discussions with Swiss authorities and possible litigation to recover losses.
The bondholder group holds a "significant percentage of the total notional value" of the AT1 bonds, the law firm said in a statement on Monday. The group includes large institutions that invested in the bonds long before the merger, it said.
“There is still a chance that the various actors will recognize and correct the mistakes made in hastily orchestrating this merger,” said Thomas Werlen, managing partner at Quinn Emanuel's Zurich office. AT1 bonds are the riskiest type of debt banks can issue, ranking immediately after equity in the event of losses.
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