Confederation and UBS sign CHF 9bn Loss Protection Agreement

Niederer Kraft Frey advised the Swiss Confederation on the conclusion of a Loss Protection Agreement (LPA) with UBS Group AG. The loss protection guarantee governed by the LPA is a cornerstone element of the merger between UBS and Credit Suisse and became effective with the completion of the merger on 12 June 2023.

The LPA provides for a loss share of CHF 9 billion by the Swiss Confederation following the realisation of certain non-core asset of Credit Suisse by UBS if realised losses arising from the realisation exceed an amount of CHF 5 billion and will remain in effect until the realisation of all assets covered by the loss protection guarantee, or until it is terminated by UBS. UBS will manage the assets covered by the loss protection guarantee in a prudent and diligent manner with the intention to minimise any losses and maximise value realisation on these assets.

The NKF team was led by partners Ulysses von Salis (Corporate/Finance), Philipp Haas (Corporate/Capital Markets) and Philip Spoerlé (Finance/Capital Markets), working with partners Philipp Candreia (Corporate/Banking & Finance), Deirdre Ni Annrachain (Capital Markets), Thomas Graf, Markus Kronauer, Daniela Schmucki (all Tax) and Adrian Koller (Corporate/Finance), counsel Martin Schaub (Banking & Finance), senior associates Katalin Siklosi (Corporate), Julia Tolstova (Corporate) and Daniel Antognini (Dispute Resolution) and associates Selim Lötscher (Corporate/Finance) and Aleksa Stojadinovic (Tax).

Alvarez & Marsal, the international consulting group, acted as sole financial and business advisor to the Swiss Confederation.