UBS expects agreement on Credit Suisse loss guarantee by June 7 - SEC filing (updated)

Credit Suisse AG

06/06/2023 12:21

(Adds detail, background)
       ZURICH, June 6 (Reuters) - UBS  UBSG.S  expects to
finalize its agreement with the Swiss government to cover up to
9 billion Swiss francs ($9.92 billion) in losses from its
emergency takeover of Credit Suisse  CSGN.S  by June 7, the
Swiss bank said in a regulatory filing published on Tuesday.
    "UBS Group AG expects that the Loss Protection Agreement
will be finalized by June 7, 2023," a filing with the U.S.
Securities and Exchange Commission said.
    Under the takeover of Credit Suisse, orchestrated by Swiss
authorities, Bern agreed to shoulder up to 9 billion francs in
losses after UBS agreed to cover the first 5 billion francs in
losses.
        "Any further loss guarantee exceeding CHF 14 billion,
which was not included as part of the Special Ordinance,
requires a separate legal basis in the form of a parliamentary
approval in the ordinary legislative procedure as well as the
commitment credit," the SEC filling said.
  
    The government agreement is one of the last steps UBS needs
to take before it can officially close the acquisition of its
rival. 
        The SEC document, which was dated June 5, reiterated
that the UBS expects to complete the deal in the second quarter
of 2023. The 
    bank said on Monday
     it expects to seal the takeover as early as June 12.
  

($1 = 0.9075 Swiss francs)

 (Reporting by Noele Illien, editing by John Revill)
 ((Noele.Illien@thomsonreuters.com; +41 41 528 39 73;))