KUALA LUMPUR (May 10): AHAM Asset Management Bhd has confirmed that it is participating in a class action lawsuit together with other global fund managers to recover investment losses in Credit Suisse's Additional Tier 1 (AT1) bonds.
Law firm Quinn Emanuel Urquhart & Sullivan is representing the company in the suit, AHAM confirmed on Wednesday (May 10).
"We are participating in a class action lawsuit with other global fund managers on the recovery of the bonds. After reviewing various legal options, we have appointed Quinn Emanuel, to represent unitholders," said AHAM Capital when contacted by The Edge.
“Quinn Emanuel has also been appointed by other significant holders of Credit Suisse's AT1 capital instruments to act on their behalf in negotiations with Swiss authorities and potential litigation aimed at recovering losses incurred in the wake of the merger announcement between UBS and Credit Suisse.
“Quinn Emanuel is a reputable, worldwide legal firm with a proven record of accomplishment in managing comparable cases. We are confident that they will bring their vast expertise, knowledge, and experience to bear in representing our interests and those of other AT1 capital instrument holders,” the asset management firm added.
AHAM Capital had in March this year suspended the dealings of two bond funds — AHAM Single Bond Series 2 and AHAM Single Bond Series 4 — that had invested in Credit Suisse's AT1 bonds following the write-down of those bonds due to the forced takeover of the Swiss giant by rival UBS Group.
The total value of investments that was written down to zero by CreditSuisse was 16 billion Swiss francs, or US$17.5 billion (RM78 billion).
The combined size of the two AHAM Capital funds that invested in Credit Suisse's AT1 bonds amounted to about RM70 million or less than 0.1% of AHAM Capital's total assets under management of RM77 billion.
Last month, Quinn Emanuel revealed that it has been instructed by key holders of the AT1 bonds to represent them in discussions with Swiss authorities and in possible litigation to recover losses.
“We are extremely pleased to have been retained by a key AT1 bondholder group and now look forward to seeking compensation for our clients, drawing on our extensive experience in situations of this kind,” said Richard East, Quinn Emanuel’s senior partner in London in a statement last month
“There is still a chance that the various actors will recognise and correct the mistakes made in hastily orchestrating this merger,” added Thomas Werlen, managing partner of Quinn Emanuel.
Earlier this month, Quinn Emanuel reportedly added over 1,000 holders of Credit Suisse's AT1 bonds in its litigation.