Credit Suisse Bondholders Given Fresh Hope by Swiss Court Ruling

A Swiss court has given fresh hope to Credit Suisse bondholders who sought damages after their investments were wiped out when UBS Group AG rescued the bank in a government-brokered deal over two years ago.

The complainants, some 3,000 investors, had argued that the March 2023 decree to write down 16.5 billion Swiss francs ($20.5 billion) of the additional-tier 1 bonds was unlawful and should be revoked, and the write-down be reversed.

The Swiss Federal Administrative Court ruled on Oct. 1 on one of those as a test case, siding with those complainants’ right to appeal and revoking the decree, ...