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Credit Suisse bondholders’ claim for insurance payout rejected again

The panel of 11 firms said a ‘bankruptcy credit event’ did not occur at Credit Suisse

The Credit Derivatives Determination Committee said that Credit Suisse's shotgun marriage to UBS did not constitute a bankruptcy event

AFP via Getty Images
By
Jeremy Chan

Credit Suisse bondholders received another blow in their attempt to capture an insurance payout from its acquisition by cross-town rivals UBS, with a panel responsible for decisions on payouts for credit default swaps rejecting a second claim that centred on whether a "bankruptcy credit event" had occurred at the bank before the merger.

In a unanimous 22 May decision, the Credit Derivatives Determination Committee said that Credit Suisse's shotgun marriage to UBS did not constitute a bankruptcy event. It is the second time...