(Bloomberg) — One of Singapore’s biggest law firms is set to file claims against the Swiss government by the end of the year, seeking compensation for hundreds of Asian bondholders of Credit Suisse AT1 debt that was wiped out in 2023. Drew & Napier plans to proceed with so-called investment treaty claims through the first investment treaty of Hong Kong director, and follow first through the Japanese bondholders’ claims for Japanese bondholders. this is what represents about 560 mortgage holders from the three jurisdictions. A court ruling in Switzerland that the write-down of the Credit Suisse AT1 bonds was illegal is the “first step in righting the wrong done to our clients,” said Mahesh Rai, who is working on the case that will seek to recover losses totaling about $300 million from the Swiss government. Switzerland’s finance ministry declined to comment in response to an inquiry from Bloomberg News. The Swiss Federal Administrative Court this month sided with plaintiffs who argued that a March 2023 decision to write off 16.5 billion Swiss francs ($20.8 billion) of the AT1 bonds — under a government-brokered rescue of Credit Suisse by UBS Group AG. – was illegal and should be repealed. Still, investors’ hopes will be tempered by how long the legal process will take, and whether any eventual payout is likely. The complete write-off of the AT1 bonds caused a stir, as shareholders usually absorb losses before bondholders. Under bilateral investment treaties, Drew & Napier had to send trigger letters to the Swiss government, which they did in December 2024 and May this year. The firm now begins the claim, as the treaties require the parties to negotiate for a period of six months after the issuance of the letters. Their actions are based on treaties Switzerland has had with Singapore, Japan and Hong Kong for decades. These treaties provide protection to individuals and companies that make investments, including safeguards against the expropriation of their investments and unfair treatment by governments. Rai said the firm was “positive about the prospect of success” and continued to sign on affected bondholders. The litigation finance firm Omni Bridgeway Ltd. agreed to pay the investors’ legal fees. –With assistance from Noele Illien. More stories like this are available on bloomberg.com ©2025 Bloomberg LP
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