Withers to take action against Switzerland on Credit Suisse AT1 losses in Asia

The law firm is acting for investors across the region, including in Hong Kong and Singapore

Tan Nai Lun

Published Thu, Oct 23, 2025 · 07:11 PM

The forced write-down of Credit Suisse's AT1 bonds in March 2023 led to significant losses for investors. PHOTO: REUTERS

[SINGAPORE] International law firm Withers is commencing proceedings against Switzerland for its forced write-down of Credit Suisse’s Additional Tier-1 (AT1) bonds in March 2023.

It is acting for investors across Asia, including in Hong Kong and Singapore, to recover losses from the write-down arising from UBS’ takeover of Credit Suisse, it said on Thursday (Oct 23).

It previously issued formal trigger letters on behalf of Singapore investors in November 2023. It will be doing so on behalf of Hong Kong bondholders “soon”. This is to initiate investment treaty arbitration, which will be pursued under the applicable bilateral investment treaty.

The proceedings will be jointly led by Withers partners Dr Robert Kovacs out of London and Pardeep Khosa out of Singapore.

“Momentum is accelerating across Asia as we bring together contingents of Credit Suisse bondholders to pursue their treaty-based rights,” said Kovacs.

The firm is in “advanced discussions” with global legal finance provider Omni Bridgeway for funding arrangements to support the proceedings.

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The news comes days after Singapore law firm Drew & Napier said it will file claims against the Swiss government on behalf of Asian AT1 bondholders by the end of the year.

Drew & Napier’s action is based on investment treaties that Switzerland has with Singapore, Japan and Hong Kong. The firm, which is representing about 560 bondholders across the three jurisdictions, is looking to recover losses of around US$300 million from the Swiss government.

In July, law firm HFW also said it was inviting Credit Suisse AT1 bondholders in Singapore to join a pending class action – referred to as a group representative investor state treaty arbitration – against Switzerland for the write-down of the bonds.

Swiss court says 16.5 billion Swiss francs bond write-off in Credit Suisse rescue was unlawful

In March 2023, the Swiss government announced that US$17 billion worth of Credit Suisse perpetual bonds would be written off as part of UBS’ takeover of the bank.

Over 500 investors, including 300 Singaporeans, kick off claim against Switzerland over Credit Suisse bond losses of over US$250 million

ATI bonds were introduced in the aftermath of the global financial crisis to prevent taxpayers from picking up the cost for a bank’s failure.

Australia moves ahead to scrap AT1 bonds after Credit Suisse hit

The local banks will likely only take a hit if Singapore’s regulators follow suit, but analysts said this will unlikely happen given the difference in the investor pool from Australia and that there is enough appetite for AT1s here.

Australia’s plan to scrap AT1 bonds unlikely to affect Singapore banks

The arbitration is based on Switzerland’s alleged breaches of its obligations under international law, in particular treaty obligations owed under relevant investment pacts.

International law Additional Tier 1 bonds Credit Suisse Group Lawsuits

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