Credit Suisse Announces Settlement of Noteholder Litigation Relating to NCFE Notes Issued between 1998 and 2002
Credit Suisse today announced that it has entered into agreements with noteholders of affiliates of National Century Financial Enterprises (NCFE) to end all noteholder litigation against Credit Suisse. As a result of this settlement, Credit Suisse will incur an after tax charge in respect of its 2012 financial results of CHF 134 million.
NCFE was an Ohio (USA) based health care finance company that went bankrupt in 2002. The litigation against Credit Suisse related to notes issued by affiliates of NCFE between 1998 and 2002. This agreement represents a full and final settlement in respect of this noteholder litigation against Credit Suisse.
As this settlement was reached prior to the filing of Credit Suisse Group’s 2012 Annual Report, which is scheduled for March 22, 2013, applicable accounting standards require that this charge of CHF 134 million after tax be reflected in the 2012 financial statements. Reported 4Q12 net income consequently is CHF 263 million and reported 2012 full year net income is CHF 1,349 million. Underlying net income of CHF 816 million for the fourth quarter and CHF 3,577 million the full year 2012 is not impacted. Updated 4Q12 and 2012 full year results will be published simultaneously with the Annual Report on March 22, 2013.