Omni Bridgeway to fund investor-state claims against the Swiss Confederation on behalf of Credit Suisse Additional Tier-1 bondholders
In March 2023, the Swiss Government and authorities facilitated a merger between Credit Suisse and UBS, which entailed a complete write-down of Credit Suisse Additional Tier-1 bonds (CS AT1 Bonds).
Third party litigation funder, Omni Bridgeway, is working on a proposed investor-state group action by holders of CS AT1 Bonds (Bondholders) against the Swiss Confederation to claim compensation for the losses incurred as a result of the March 2023 merger of Credit Suisse and UBS.
What legal remedies are available to Bondholders?
Bondholders have remedies at domestic and international level:
(1) Domestic courts. Bondholders have rights under Swiss law to challenge the actions of the authorities in relation to the merger between UBS and Credit Suisse.
(2) Investor-state and treaty claims. Bondholders also have rights to claim compensation against Switzerland under international investment treaties.
The group action to be funded by Omni Bridgeway is currently focused on the international investment treaty remedies against the Swiss Confederation.
What is an investment treaty?
An international agreement that gives private individuals and companies the right to claim compensation when the government of a foreign country harms any investment they made in that country.
What is the basis for the claim?
Switzerland has international obligations to protect foreign investments, which include obligations to act fairly towards foreign investors and not to deprive investors of their investments without proper compensation. Switzerland failed to comply with these obligations when ordering the write-down of AT1 bonds and facilitating the merger between Credit Suisse and UBS. In particular, Switzerland subverted the well-established creditor hierarchy and ignored the applicable resolution regime when taking emergency actions over the weekend of 18-19 March 2023. Bondholders are entitled to compensation for the losses suffered by Switzerland’s breaches of its international obligations.
Am I eligible to participate in the claim?
There are two criteria for this claim in order to qualify for protection under an investment treaty with Switzerland:
(1) You must be an individual (or company) with the nationality of one of the following jurisdictions: Mainland China, Hong Kong, Singapore, Japan, Republic of Korea, Kuwait, Oman, Philippines, Qatar, Saudi Arabia or United Arab Emirates.
(2) You must have acquired the CS AT1 Bonds prior to 19 March 2023 and still hold those bonds as at 19 March 2023.
How much will it cost to be part of the bondholder action?
Omni Bridgeway is an established global third party disputes funder that will provide disputes funding to Bondholders to cover the legal fees and disbursements associated with any group action against Switzerland. The funding to be provided is subject to the number of Bondholders who sign-up to participate in the action and the related estimated value of the losses of those Bondholders.
The benefit for Bondholders is that Omni Bridgeway is offering a funding arrangement so that Bondholders have no “out-of-pocket” costs in the group action. The group action will be run on a “no success, no fee” basis in accordance with the terms of a legal finance agreement between Omni Bridgeway and the Bondholders. This means:
- If the claim is unsuccessful, Bondholders pay nothing, and are protected against any adverse costs risk.
- If the claim is successful, Omni Bridgeway will be entitled to a portion of the compensation that Switzerland is ordered to pay by the arbitral tribunal.
When are the immediate deadlines Bondholders need to be aware of?
We invite all interested Bondholders to complete the Legal Finance Agreement as soon as possible by clicking the 'Sign Up' button on this page.
What experience does Omni Bridgeway in funding investor-state and treaty claims?
Omni Bridgeway (ASX: OBL) is one of the world’s largest and longest established disputes financer. For over 35 years, Omni Bridgeway has partnered with claimants around the world to help mitigate the costs and risks of international disputes. Omni Bridgeway has funded arbitration claims and award enforcements in over 100 jurisdictions, with significant depth of experience funding investor-state and treaty claims against sovereign states and quasi-sovereign entities. The international arbitration team spans more than 11 countries, including the largest funding team in Asia by some margin, and is ranked in Band 1 for Litigation Funding: International Arbitration in Chambers and Partners 2024.
More information about Omni Bridgeway’s arbitration experience can be found here.
Which law firm is Omni Bridgeway working with on the proposed claims?
Omni Bridgeway is working with Drew & Napier LLC (D&N) as the lead firm on the group action.
How do I sign up to obtain funding from Omni Bridgeway or receive more information?
If you wish to participate in the CS AT1 Bond group action, please complete the signup process via this website as soon as possible, by clicking the 'Sign Up' button on this page.
Alternatively, please feel free to contact the Omni Bridgeway Client Liaison Team (based in Perth, Australia) by email on [email protected] or by calling +61 8 9225 2322 if outside of Australia (or freephone on 1800 016 464 in Australia) if you would like further information.