Foreign banks prepare for legal action against UBS and Credit Suisse
A group of more than 60 financial institutions is preparing to sue Switzerland's two largest banks, UBS and Credit Suisse, over their involvement in the restructuring of Switzerland's national carrier, Swissair, according to a report published on Sunday in a British newspaper.
Britain’s “Sunday Telegraph” newspaper reports that the group is critical of the two Swiss banks for failing to consult them prior to the purchase of Swissair Group’s 70 per cent stake in the regional airline, Crossair.
The paper claims the group of banks, thought to include Deutsche Bank and Citibank, is owed about SFr9 billion ($5.56 billion) in loans to Swissair.
The group is also reported to be accusing UBS and Credit Suisse of excluding other Swissair creditors from the deal.
A partial rescue plan concluded last Monday between the two banks and the ailing Swissair Group did not prevent Swissair from grounding its fleet for two days after the company’s liquid assets ran dry.
No comment
UBS and Credit Suisse declined to comment on the threat of legal action.
A UBS spokesman refused to confirm or deny whether creditor banks had been consulted about the restructuring plan.
An unnamed banker quoted in the newspaper explained that the Swiss banks had acted rapidly to avoid a crisis.
“But the banks are outraged that they have been left with a mountain of debt. They are also furious the two Swiss banks appear to have walked off with the jewel in the crown for a cheap price,” he added.
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