Drew & Napier plans $300M claim against Swiss Government over Credit Suisse AT1 writedown

Singapore law firm Drew & Napier is preparing to file claims against the Swiss government seeking compensation for approximately 560 Asian investors whose Credit Suisse Additional Tier-1 (AT1) bonds were fully written down in 2023. The action follows a Swiss Federal Administrative Court ruling that the March 2023 writedown of 16.5 billion Swiss francs was unlawful and should be revoked. Drew & Napier will initiate investment treaty claims starting with Japanese bondholders, then proceeding to those from Hong Kong and Singapore, aiming to recover losses around $300 million. The claims are based on bilateral investment treaties protecting investors against expropriation and unfair government treatment. Litigation funding for the legal fees will be provided by Omni Bridgeway Ltd. While the writedown caused considerable controversy because shareholders typically absorb losses before bondholders, the legal process to seek compensation could be lengthy and uncertain.