ZURICH, April 17 (Reuters) – The Swiss authorities has awarded an advisory mandate value as much as 8.7 million Swiss francs ($9.70 million) to Alvarez & Marsal Switzerland, linked to the rescue of Credit score Suisse (CSGN.S), based on state procurement platform Simap.ch on Monday.
Swiss authorities final month engineered a takeover of struggling Credit score Suisse by rival UBS (UBSG.S) that included over 200 billion francs in monetary ensures.
As a part of the shotgun marriage between Switzerland’s two largest banks, Bern advised UBS it will cowl as much as 9 billion francs of losses on the sale of Credit score Suisse property which are tough to worth.
UBS would cowl the primary 5 billion francs of losses.
“For the contractual implementation of the granting of the assure, the Confederation wants recommendation and assist within the brief time period from an financial perspective,” it says on Simap.ch. Because the merger of the banks is to be accomplished in a short time, the assure to cowl losses have to be ready instantly, it mentioned.
A spokesperson for the Ministry of Finance mentioned that Alvarez & Marsal would supply recommendation to the federal government in the course of the negotiations to attract up an in depth settlement with UBS and within the liquidation of the property.
A spokesperson for Alvarez & Marsal confirmed the mandate.
Ten days in the past, the Ministry of Finance additionally awarded the regulation agency Niederer Kraft Frey (NKF) a contract to advise on the contractual implementation of the granting of the assure. The Ministry of Finance pays as much as CHF 10.3 million for this service.
($1 = 0.8965 Swiss francs)
Writing by Noele Illien; Enhancing by Sharon Singleton
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