AllianceBernstein to sue Switzerland over $17 bln Credit Suisse debt wipeout, FT reports (updated)

Alliancebernstein Holding LP

10/12/2024 05:59

(Adds details from report in paragraph 2; background in
paragraphs 4 and 5)
       Dec 10 (Reuters) - U.S. asset manager AllianceBernstein
 AB.N  is preparing to sue Switzerland for $225 million after
UBS'  UBSG.S  takeover of Credit Suisse last year led to the
erasure of $17 billion of the failed bank's debt, the Financial
Times reported on Tuesday.
    AllianceBernstein is set to be added as a plaintiff in a
case brought by law firm Quinn Emanuel Urquhart & Sullivan on
behalf of Credit Suisse bondholders in January, the report said,
citing people familiar with the matter.
    UBS and AllianceBernstein did not immediately respond to
Reuters' requests for a comment.
    Earlier this year, a group of Credit Suisse bondholders
holding $82 million worth of the failed bank's Additional Tier 1
(AT1) debt had filed a lawsuit against Switzerland seeking
compensation.
    Credit Suisse collapsed in 2023 and was taken over by UBS in
a rescue orchestrated by Swiss authorities. As part of that
operation, Swiss regulator FINMA wrote down about $17 billion of
Credit Suisse's AT1s, angering bondholders.

 (Reporting by Angela Christy in Bengaluru; Editing by Varun H
K)
 ((AngelaChristy.M@thomsonreuters.com;))