2023-05-23 21:07:22
The Federal Administrative Court announced on Tuesday evening the withdrawal of an appeal by Credit Suisse Group against a decision by FINMA ordering it to amortize Additional Tier 1 type loans. This decision prompted some 230 appeals before the TAF. These proceedings are still pending.
On March 19, the Financial Market Supervisory Authority (FINMA) ordered the redemption of all AT1 instruments and the immediate notification of the creditors concerned. This measure concerning this category of bonds was ordered in the context of the takeover of the bank by UBS.
A divergence has arisen between FINMA and Credit Suisse on the scope of this amortization. The bank considered that it did not relate to the Contingent Capital Awards not issued by Credit Suisse Group but awarded by other group companies to its employees as compensation. The financial markets policeman challenged this interpretation in a clarification communicated on March 22.
Provisional measures
On April 24, Credit Suisse sent a request for provisional measures to the Federal Administrative Court in view of an appeal against FINMA’s clarification. The judicial authority has conditioned the entry into the matter on this request to the filing within the deadlines of a formal appeal.
Finally, Credit Suisse informed the Federal Administrative Court on May 9 of its decision to waive appeal and, therefore, to withdraw the request for provisional measures. The procedure being without object, it is struck out of the list. This radiation can be challenged before the Federal Court.
Tuesday during the day, a spokesman for the court told the AWP agency that the body had so far received 230 complaints concerning Credit Suisse AT1 loans. He confirmed information from Archyde.com. These procedures bring together some 2,500 investors who held these now worthless bonds.
These actions are still pending and the Federal Administrative Court is not able to communicate on the date of the judgment.
>> Read also: “Credit Suisse’s Board of Directors is responsible”, says Karin Keller-Sutter
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