Analysts expect that holders of Credit Suisse securities will likely receive a payout as a result of UBS purchasing those assets. But compensation is unlikely to be given to bondholders, particularly those of the high-risk AT1 notes.
A number of Credit Suisse bondholders have already said they are prepared to file lawsuits in this respect. A potential start of litigation on behalf of the bank’s bondholders has been discussed, according to a statement made by the California law firm Quinn Emanuel Urquhart & Sullivan.
David Benamou, the investment director of Axiom Alternative Investments, which holds AT1 bonds from Credit Suisse, said he is ready to join the case. He believes that other creditors will follow suit.
source: cnbc.com
